March 11, 2025 /SemiMedia/ — Wolfspeed, a leading U.S. silicon carbide (SiC) semiconductor manufacturer, has announced plans to lay off 180 employees at its Durham and Siler City facilities in North Carolina. The decision comes as the company faces financial pressure due to slowing electric vehicle (EV) demand and production challenges.

Formerly known as Cree, Wolfspeed has shifted from LED lighting to SiC semiconductor production. However, market uncertainties and the financial strain of its new $5 billion Siler City plant have posed significant operational challenges. Over the past year, the company has replaced its CEO, shut down a plant, and reduced its workforce by 20% as its stock price has plunged over 90% from its pandemic-era peak.

The layoffs coincide with Wolfspeed’s ongoing expansion of its Siler City SiC materials facility, which is expected to employ up to 1,800 workers in the coming years. North Carolina state and local governments have pledged $700 million in incentives if hiring targets are met. Additionally, the plant is set to receive $750 million in funding under the CHIPS Act, though final approval is still under negotiation.

To streamline operations, Wolfspeed aims to cut capital expenditures by $150 million to $200 million by 2026 and achieve annual cost savings of $30 million to $50 million by 2027. Despite restructuring efforts, the company remains committed to its hiring plans at Siler City.

In a filing with the U.S. Securities and Exchange Commission, Wolfspeed stated that even without CHIPS Act funding, it expects to return to positive free cash flow by 2027. A company spokesperson added, “These actions will strengthen our financial foundation and position us for long-term growth.”