Wolfspeed ousts CEO after lackluster earnings

Wolfspeed Inc. (NYSE: WOLF) is changing things up — starting at the top — after a disappointing first quarter for fiscal year 2025. Less than two weeks after its first earnings report for the year, which revealed a net loss of $282.2 million, the chipmaker announced on Nov. 18 that it would be parting ways with president and CEO Gregg Lowe, effective this month. Wolfspeed has been hurt by the slowdown in demand for electric vehicles, among other issues. “Since joining the company as CEO in 2017, Gregg has spearheaded our transition into a leading, pure-play silicon carbide company well-positioned to capture the long-term opportunities ahead,” Thomas Werner, Wolfspeed’s executive chairman of the board, said in a news release about the leadership change. “The board has always been focused on driving long-term value, and at this inflection point in Wolfspeed’s journey, the board agreed that this is the right time for a leadership transition.”  The announcement comes after a rocky period for the company, which announced in August it would shutter its 150 mm silicon-carbide fabrication facility in Durham, North Carolina, where the company is headquartered. Wolfspeed has already begun laying off about 20 percent of its workforce. The company plans to focus on its 200 mm fabrication facilities, including its Mohawk Valley Fab that opened in 2022. In June, that facility achieved 20 percent utilization, and the company continues to build out the remainder of the facility. In April, investor Jana Partners, which owns a stake in Wolfspeed, wrote to urge the chipmaker to explore ways to improve shareholder value after the stock price fell almost 50 percent since January, according to Reuters. The share-price declines continued. Wolfspeed’s stock opened trading on Nov. 18 at $6.87 per share, a sharp fall from a $43.16 open on Jan. 2. Lowe joined Wolfspeed, then known as Cree, as president and CEO in September, 2017. Prior to Wolfspeed, he served as president/CEO of Freescale Semiconductor from 2012 through 2015. He also spent 28 years at Texas Instruments, including serving as senior VP and leader of the analog business. “I am honored to have had the opportunity to lead Wolfspeed and work alongside such talented and dedicated colleagues,” Lowe said. “While there is work still to be done, I have every confidence that Wolfspeed will execute on its strategic priorities and extend its silicon carbide leadership in the years to come.” In April 2022, Lowe joined state and local leaders to open the Mohawk Valley Fab in the Marcy Nanocenter. At the time, the company had about 265 employees and was operating at 10 percent of the facility’s capacity. Since then, both production and employment have grown rapidly. Within a year, employment topped 400 people and work was underway to build out the rest of its 125,000-square-foot clean room. “Gregg Lowe’s leadership at Wolfspeed has been instrumental in advancing the semiconductor industry and solidifying Wolfspeed’s role as a global leader in silicon carbide technology,” Oneida County Executive Anthony J. Picente, Jr. said in an emailed statement to CNYBJ. “His commitment to the Marcy Nanocenter has been transformative for Oneida County, fostering economic growth and positioning our region as a hub for innovation. As Wolfspeed transitions to new leadership, I am confident that the strong foundation built under Gregg’s tenure will ensure continued success for the company and our community. Oneida County remains a dedicated partner in supporting Wolfspeed’s mission and the advancement of high-tech manufacturing in the Mohawk Valley.” Mohawk Valley EDGE released the following statement, reacting to the news of Lowe’s departure from Wolfspeed. “Gregg’s contributions will always be remembered in the soil of the Marcy Nanocenter and throughout the Mohawk Valley region. His vision and leadership were crucial in bringing Wolfspeed’s operations to our community, and we express our sincerest gratitude to him. Since opening, the Mohawk Valley Fab has consistently grown, surpassing our projected utilization and production rates. This success did not happen overnight. Gregg understood the importance of the long game, collaborating closely with our local, state, and federal partners to turn this vision into a reality. Gregg had a special relationship with EDGE President Steve DiMeo, and we know that Steve would be tremendously proud of the work Gregg has done for our community to push this project across the finish line. On behalf of Mohawk Valley EDGE, we sincerely thank Gregg for leading the semiconductor manufacturing initiative. While we understand the company’s current position in the EV market, we believe that Wolfspeed’s success is just beginning,” EDGE said. As executive chairman, Werner said his focus is on completing key priorities while the Wolfspeed board conducts a search for the next CEO. That includes restructuring initiatives to lower the company’s break-even point and accelerate its path toward profitability. For the quarter ended Sept. 29, 2024, Wolfspeed reported a net loss of $282.2 million on sales of $194.7 million, down from a loss of $395.7 million on sales of $197.4 million for the same quarter in 2023. Headquartered in Durham, North Carolina, Wolfspeed produces silicon carbide used in several industries including electric vehicles, renewable energy, and data connectivity.