Wolfspeed cuts 20% of its jobs ahead of hiring ramp up in Chatham County
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Wolfspeed's factory in Durham. Photo: JIM WATSON/AFP via Getty Images
Durham semiconductor maker Wolfspeed is cutting 20% of its global workforce — both through layoffs and voluntary exits — ahead of a planned 1,800-job hiring spree at a new plant in Chatham County.
Why it matters: Wolfspeed, founded on technology from N.C. State University, has around 5,000 workers across the globe — but the majority are based here in the Triangle, meaning the cuts could affect hundreds locally. Wolfspeed did not give an exact number.
Driving the news: Wolfspeed said in August that it planned to close one of its Durham factories as part of an effort to control costs.
- Electric vehicles are one of Wolfspeed's largest markets, and a slowdown of demand in that industry has affected the company, lowering its stock price and leading to an activist investor pushing for cost cuts.
- The company also recently delayed plans for a factory in Germany.
The layoffs announced this week will affect 10% of the company's workforce, Wolfpeed spokesperson Kris Camacho told Axios.
- An additional 10% reduction in headcount has come from attrition and "voluntary early exits," Camacho added.
- The company said closing the factory and reducing its workforce will save Wolfspeed an estimated $200 million annually.
The big picture: Camacho said that the cuts do not affect the company's under-construction factory in Chatham County, one of the largest investments in the state's history at $5 billion.
- The Chatham County factory — which will employ a range of positions, from engineering to marketing — recently received federal funding worth around $750 million from the CHIPS Act.
What they're saying: "It is important to point out that Wolfspeed remains committed to North Carolina and the promise of silicon carbide to enable a better world and the electrification of everything," the company said in a statement, noting its corporate headquarters and two other manufacturing facilities remain fully operational in Durham.
- "Additionally, as we continue to invest in the development of our Siler City facility, we remain committed to creating approximately 1,800 new jobs in North Carolina over time," it added.