New job cuts as Wolfspeed pushes for positive cash flow
In late January, Wolfspeed outlined a series of strategic initiatives aimed at improving financial performance and securing long-term growth. The plan focuses on three key areas: accelerating the path to positive free cash flow, strengthening the balance sheet, and raising cost-effective capital.
Now, through an SEC filing, the company is providing an update on these efforts. As part of its cost-cutting measures, Wolfspeed will reduce its workforce by approximately 180 employees, primarily within its materials operations in Durham and Siler City, North Carolina.
The company is also significantly scaling back its CapEx, targeting a reduction to USD 150 million to USD 200 million in fiscal year 2026 and further lowering CapEx to USD 30 million to USD 50 million in fiscal year 2027.
As part of its restructuring, Wolfspeed is closing its North Carolina Fab facility and implementing operational simplifications. Once this is completed, the company has set financial targets of:
- Achieving an adjusted EBITDA break-even point at USD 800 million in annual revenue
- Generating approximately USD 200 million in positive unlevered operating cash flow in FY2026, contingent on revenue growth.
"Upon the successful completion of debt refinancing efforts and operational restructuring, Wolfspeed aims to achieve positive levered free cash flow in FY2027 while maintaining sufficient cash and liquidity," the company stated in the SEC filing.
On March 6, 2025, Wolfspeed confirmed the 180 job cuts and announced that it expects to take a one-time charge related to a litigation settlement in 3Q25. Additionally, Wolfspeed announced that it has received its conditional Certificate of Occupancy for the Siler City Materials Facility.
