Wolfspeed ousts CEO Gregg Lowe as EV demand drops, triggering a 6% stock surge. The company faces closures, layoffs, and a stalled German factory plan.
On Monday, chip manufacturer Wolfspeed announced that its board removed Gregg Lowe as CEO without cause amid declining demand for electric vehicles, causing its shares to rise by about 6%.
Lowe, who has been CEO since 2017, will receive a severance payment as part of the exit agreement. Wolfspeed also named Chairman Thomas Werner executive chairman and is searching for a permanent CEO.
The Durham, North Carolina-based company has been facing production issues at its factory, which is set to close, and struggling with lower orders from industrial and energy markets.
Industry experts, according to Reuters, noted that despite a weak demand environment, Wolfspeed’s restructuring plan and reduced capital spending for fiscal 2025, the company’s new leadership will likely struggle to boost shares unless a major sale occurs.
Wolfspeed’s stock has dropped 85% this year, significantly underperforming the S&P 500 and the Philadelphia semiconductor index.
The company, known for producing energy-efficient silicon carbide (SiC) chips, serves clients like General Motors and Mercedes-Benz. Earlier this month, Wolfspeed warned of lower-than-expected quarterly revenue and announced $174 million in restructuring charges related to the facility closure. The company also revealed plans to lay off 20% of its workforce and abandoned plans to build a factory in Ensdorf, Germany, due to slower EV adoption in Eu
