Logitech says CEO stepping down, shares fall

Logitech's shares fell on Wednesday after the computer accessories maker said its chief executive officer and president, Bracken Darrell, was resigning with immediate effect and would be leaving the company to pursue another opportunity.

Darrell, who became Logitech CEO in 2013, will remain with the company over the coming month to facilitate the transition while a search for a replacement is conducted, the company said late Tuesday.

Meanwhile, board member Guy Getch would step in as interim CEO, it added.

Also Read | Accenture to invest $3 billion in AI, double employees working for the budding tech

Logitech shares were down 8.6 per cent in early Wednesday trade.

Analysts were caught by surprise by the late-night announcement, which came after Tuesday's market close.

"While the abrupt change will impact investor sentiment and add near-term pressure on the shares as Bracken was the face of Logitech, we expect Logitech's strategy to remain unchanged," Vontobel analyst Michael Foeth said.

The leadership change comes after Logitech posted a 22 per cent drop in fourth-quarter sales in May, as a growing economic downturn continued to hinder the company from maintaining pandemic-era growth.

"I feel this is a good point to hand over leadership," Darrell said, adding he would remain a "customer, shareholder and fan" of the Swiss-American tech company.