February 27, 2025 /SemiMedia/ — STMicroelectronics CEO Jean-Marc Chéry is reportedly facing dismissal by the Italian government due to underperformance. Sources indicate that, as industry headwinds intensify, the government believes Chéry has failed to meet expectations, leading to calls for his removal.

The news comes at a critical time for STMicroelectronics, which has declared 2024 as one of the worst years for the industry in decades. In January, the company forecast that Q1 net income would fall short of analyst expectations. Amid weak demand, the company is also reportedly considering laying off up to 3,000 employees.

During a January earnings call, Chéry mentioned that STMicroelectronics is exploring cost-cutting measures and plans to offer early retirement options to some employees. The company will also begin discussions with employee representatives about a voluntary separation program. The ongoing industry downturn has forced the Geneva-based firm to repeatedly lower its financial targets, with its stock price falling by more than 45% over the past 12 months.

Founded in 1987, STMicroelectronics was created through the merger of French and Italian state-owned semiconductor manufacturers, and remains a strategically important entity for both countries. The company supplies traditional chips to clients such as Apple and Tesla, which generally require older technologies and do not necessitate state-of-the-art production facilities.