NC chipmaker Wolfspeed announces more layoffs at Durham and new Siler City factories
Following mass layoffs last year, the Durham semiconductor manufacturer Wolfspeed plans to cut more jobs at two North Carolina campuses, including its new Chatham County factory.
Wolfspeed told regulators in a financial filing Friday it will lay off around 180 workers, most in materials operations, at both its main Durham site and its incoming plant in western Chatham, near Siler City.
The company still intends to reach its Siler City hiring commitment of 1,800 workers, spokesperson Bridget Johnson told The News & Observer, but that job growth “will occur at a slower pace than initially projected based on current customer demand.”
Wolfspeed had already reduced its headcount by 20% during the second half of 2024 through cuts, voluntary buyouts and staff attrition. The chipmaker had employed around 5,000 workers worldwide, as of last June, with more than half based locally.
In September 2022, North Carolina awarded Wolfspeed a performance-based economic incentive worth up to $76 million that is contingent on the company investing at least $5 billion and creating at least 1,800 jobs at the Chatham site. The company completed the factory’s external construction last year and anticipates opening it by June.
Friday’s announcement came days after President Donald Trump criticized the CHIPS and Science Act, casting doubt on its future in the current administration. Wolfspeed is slated to receive millions in funding through the act.
Over the past decade, Wolfspeed, formerly named Cree, has moved away from manufacturing LED lights and toward exclusively making a unique type of semiconductor called silicon carbide. Industry experts praise this material as more efficient than standard silicon chips when powering appliances like electric vehicles. But Wolfspeed has struggled in the past two years with production delays at its New York State facility as well as wavering overall chips demand.
Its share price has plunged, going from $73 in March 2023 to below $6 today. Investors did respond favorably to Wolfspeed’s cost cutting news Friday, sending its stock up 11%.
On Friday, the company said its latest jobs cut was one of several “aggressive steps to strengthen its balance sheet.”
Wolfspeed’s financial maneuvers
Facing a sizable debt obligation next year, the company also announced it would lower its 2026 capital expenditure spending forecast from $300 million to less than $200 million (this “capex” forecast had previously been as high as $600 million).
“We believe these actions will continue to strengthen the company’s financial foundation and enable us to deliver a much stronger future for all of our stakeholders,” Johnson said.
In August, Wolfspeed announced it would shut its device factory in Durham. And then in November, the company fired its CEO. That month, Wolfspeed laid off 10% of its global workforce, eliminating several hundred jobs near Research Triangle Park.
The CHIPS and Science Act funding remains unresolved for now. In October, the Department of Commerce awarded Wolfspeed a $750 million grant through the CHIPS and Science Act to help fund its Chatham factory.
To receive this money, the Biden administration required Wolfspeed first reach certain financial and operational milestones. While the company has completed some of these goals, including securing a matching $750 million private loan, it still must address its 2026 debt obligation.
The new Trump administration has not awarded any CHIPS grants since taking office, and Trump levied criticism against the program Tuesday during his joint congressional address.
In its filing Friday, Wolfspeed said it will continue to pursue federal funding while also readying for a future without it. The company stated its cost reductions should give it enough liquidity to complete its new operating plan “excluding any federal grant funding.”
This story was originally published March 7, 2025 at 1:54 PM with the headline "NC chipmaker Wolfspeed announces more layoffs at Durham and new Siler City factories."
