Wolfspeed Cuts 73 Jobs in North Carolina Due to Weak Demand
Durham-based chipmaker Wolfspeed is laying off 73 employees at its Siler City facility in Chatham County. The cuts affect manufacturing managers, technicians, engineers and other workers.
Why the cuts happened:
- Softer demand for silicon carbide chips
- Company aligning staff with current customer needs
- Part of broader cost-cutting efforts
Company's situation:
- Transitioning from older Durham facilities to newer plants in Siler City and New York
- Facing $575 million debt payment due within a year
- Waiting for uncertain $1.75 billion in federal funding
- Stock has dropped 95% in the past year
- Considering options including possible bankruptcy restructuring
The company says the Siler City facility remains important to its long-term growth strategy and will still open as planned. However, the layoffs show how even companies building new facilities are cutting jobs when demand weakens.