Wolfspeed Cuts Workforce, Secures $750M Funding

Wolfspeed, a leading semiconductor maker, is reducing its global workforce by 20% due to financial difficulties and a strategic shift towards more efficient production. The layoffs, affecting up to 10% of staff through direct cuts and another 10% through voluntary exits, aim to save $200 million annually amid declining demand for electric vehicles, one of Wolfspeed's major markets. Despite these reductions, the company remains committed to its $5 billion plant in Chatham County, which recently received $750 million in federal funding. Financially, Wolfspeed reported a quarterly loss exceeding expectations and anticipates further restructuring costs of $174 million, linked to the closure of its Durham and Farmers Branch facilities. The company's shares have plummeted nearly 70% this year, reflecting ongoing challenges, including a recent forecast of lower-than-expected quarterly revenues. Wolfspeed's future performance will largely depend on its ability to manage costs and adapt to market conditions, particularly in the electric vehicle sector.