Italy’s government is considering replacing STMicroelectronics (NYSE:STM) chief Jean-Marc Chéry after he failed to improve the company’s prospects.

Rome considers the CEO’s performance insufficient, Bloomberg reported, citing unnamed sources familiar with the matter. Italian officials told Bloomberg they may lack the instruments to provide a replacement.

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Rome and Paris governments hold a combined 27.8% stake in the company, according to Bloomberg data. Chéry was reelected for a three-year term in May last year.

Apple Inc (NASDAQ:AAPL) and Tesla Inc (NASDAQ:TSLA) supplier STMicroelectronics stock plunged 30% in the last 12 months as it struggled to navigate a slump in demand for automobile and industrial semiconductors.

STMicroelectronics reported fourth-quarter net revenues of $3.32 billion, down by 22.4%, beating the analyst estimate of $3.31 billion. EPS of $0.37 missed the consensus estimate of $0.38.

At the mid-point, STMicroelectronics expects fiscal first-quarter net revenues to be $2.51 billion, a decrease of 24.4% sequentially, plus or minus 350 basis points versus the $2.76 billion consensus estimate.

The company said in January that 2024 was one of the worst years in decades for the industry. It was reportedly looking to cut up to 3,000 jobs.

Last year, the Intel board fired CEO Pat Gelsinger after his turnaround efforts failed to materialize. CFO Dave Zinsner and Michelle Johnston Holthaus became Intel’s interim co-CEOs. 

Price Action: STM stock traded lower by 1.86% to $26.90 at the last check on Tuesday.

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