October 1, 2025
Cree Lighting Announces Furlough, Stirring Uncertainty
Three-week pause blamed on component shortages, raises concerns for open projects
Cree Lighting has begun a three-week furlough of most operations, citing “limited availability of materials for production.”
In a letter to partners dated October 1, company president Sabu Krishnan said Cree Lighting would “pause all non-critical operations” from October 2 through October 24, adding that the company is “reviewing options for adjusting to a new operational paradigm.”
The move is not being labeled a layoff, but it has that feel according to some close to the matter. Many employees were reportedly told they’d learn today whether they are “essential” or “non-essential” — a distinction that determines their working status during the furlough. Phone support and direct emails are suspended. Only a shared inbox and limited warranty support remain available.
Orders will continue “where components are available,” the memo said — language that, rather than offering clarity, sparked fresh uncertainty. Some agents say outdoor architectural SKUs that once shipped in under four weeks are now stretching to 12 weeks or more. Some have begun inquiring about alternative outdoor lines.
Cautious Messaging, Lingering Doubts
The company messaging is that it intends to resume normal business activities later this month, but stakeholders may not expect operations to flip back to full speed on October 27. The phrase “navigate this pause” appeared in the letter — a softer framing, but one that doesn’t fully calm customer concerns.
This development follows headcount reductions in recent months and comes two years after Cree Lighting’s acquisition by CLNA Holdings, parent of ADLT (Advanced Lighting Technologies). Despite that deal being positioned as a long-term growth play, it’s now clear the transition hasn’t been smooth.
The furlough will temporarily ease financial pressure by saving roughly three weeks of payroll of numerous employees, but the cost of inaction may prove just as significant. Project delays, missed bid opportunities, and the erosion of customer trust can quickly outweigh short-term savings. In an industry where lead times and responsiveness often determine who wins the order, even a brief shutdown can alter relationships and future pipeline.
Questions and Some Answers
Inside Lighting asked Cree Lighting for clarification on how it’s advising customers and specifiers with upcoming projects, and whether factors other than supply chain led to the decision. In a statement, the company responded:
“Cree Lighting has temporarily paused non-critical operations for a brief period. This is a planned, short-term measure, and we expect to resume normal business activities later this month. We remain committed to serving our customers and partners. At this time, we do not have additional details to share. For additional information, please contact ADLT.”
What happens after October 27 remains an open question. For now, many across the lighting industry will be watching closely; not just for resumed operations, but for signs of strategic clarity.
