MARCY, N.Y. — A spate of top executive changes, high debt load, and reports of a potential, pending bankruptcy filing sent Wolfspeed Inc.’s (NYSE: WOLF) stock price tumbling in recent weeks.

What does it all mean and what’s to come for the Durham, North Carolina–based tech company, which operates a silicon-carbide wafer fab in Marcy?

The answer is unclear. Wolfspeed officials did not respond to requests for comment or an interview on May 30 with CNYBJ.

A May 20 Wall Street Journal article reported the company is considering filing for pre-packaged bankruptcy. In the wake of that article, Wolfspeed’s stock fell nearly 60 percent from May 20, when it closed at $3.13 per share, to May 21, when it closed at $1.28 per share, on a surge in trading volume. The stock didn’t stage much of a rebound over the next three weeks, closing at $1.45 on Monday, June 9.

CNYBJ checked in with area economic-development officials for reaction to the Wolfspeed news.

“We are aware of the recent reports regarding Wolfspeed’s potential consideration of a bankruptcy filing,” Mohawk Valley EDGE President Shawna Papale said in a May 29 email response to CNYBJ’s request for comment. “At this time, no official filing has been made, and we believe it is important not to speculate on the company’s internal decisions. Wolfspeed has consistently demonstrated resilience in the face of challenging economic conditions, and we remain strongly aligned with their mission. Our ongoing conversations with Wolfspeed and our industry partners reflect our shared commitment to the success of the Mohawk Valley Fab at the Marcy Nanocenter. Our priority is to ensure continued operations and workforce growth at this critical facility. Mohawk Valley EDGE remains closely coordinated with our local, state, and federal partners to support Wolfspeed’s long-term success and to maintain the region’s leadership in advanced manufacturing.”

Personnel changes

In the C-suite, Wolfspeed has been making changes since late last year when the board ousted former CEO Gregg Lowe, who has since been replaced by Robert Feurle. However, the changes haven’t ended there.

On April 30, Wolfspeed announced CFO and executive VP Neill Reynolds would depart the company on May 30. On May 28, Wolfspeed announced that Kevin Speirits, 65, currently the company’s senior VP of finance, will serve as interim CFO, effective May 30, while the company conducts a search for a permanent CFO.

Wolfspeed on May 23 brought back a former executive from the days when it operated under the Cree name to fill a newly created role at Wolfspeed. David Emerson is the company’s new chief operating officer, a role responsible for overseeing operational excellence across the company’s 200-millimeter facility footprint with a goal of reducing customer lead times. In the role, Emerson is also responsible for the operations, supply chain, and quality divisions. He previously served as executive VP of the company’s LED products division.

Wolfspeed also added two new board members that bring industry and financial experience to their roles. Paul Walsh most recently served as CFO of Allegro Microsystems, while Mark Jensen most recently served as U.S. managing partner for the technology industry at Deloitte. Both will serve on the board’s audit committee.

Wolfspeed on May 8 reported a net loss from continuing operations of $285.5 million in its fiscal third quarter ending March 30, nearly double its net loss of $148.9 million for the fiscal third quarter of 2024.

The company also reported an almost 8 percent drop in revenue in the latest fiscal quarter, with net revenue falling to $185.4 million from $200.7 million for the same quarter a year ago. However, revenue from Wolfspeed’s Marcy facility increased. The Mohawk Valley Fab contributed $78 million in revenue in this year’s fiscal third quarter, up from $28 million in revenue for the third quarter last year.

While the company did not take questions during its May 8 conference call to discuss the quarterly results, it did include Board Chairman Tom Werner on the call.

Wolfspeed has been taking steps to improve its capital structure, he said, including aggressive steps to strengthen its balance sheet, raising cost-effective capital needed for the company’s long-term growth plan, and dramatically improving financial performance and generating positive free cash flow.

“I’m pleased to report that we made notable progress on these priorities this past quarter,” Werner said. “Related to improving our balance sheet, we received approximately $192 million in cash tax refunds from the Section 48D Advanced Manufacturing Tax Credit, further boosting our liquidity. Additionally, we remain actively engaged with our lenders addressing our capital structure. Next, we continue to maintain a constructive dialogue with the Trump administration and the CHIPS Program Office regarding federal funding.”

Reynolds noted that the company’s simplification and restructuring initiatives continue with a goal of $200 million in annual cash savings. Efforts toward those goals included shuttering a 150-millimeter epitaxy facility last December with plans to sell the facility. Wolfspeed also plans to close its 150-millimeter wafer facility in Durham, North Carolina by the end of this year. The company has also reduced its workforce by 25 percent.

“We need to return to the core innovation that built Wolfspeed’s leadership,” Werner said during the earnings call. “That means recommitting to the technologies and markets where silicon carbide delivers the greatest impact and where Wolfspeed has the clearest right to win. With the right foundation in place, we believe we’re positioned to execute and win.”