Shares of Wolfspeed (WOLF) plunged Thursday after the chipmaker posted weaker-than-expected sales and guidance, and announced job cuts as it moves to simplify its business.

The company said it expects a current-quarter net loss of $362 million to $401 million, and revenue from continuing operations of $160 million to $200 million. Analysts surveyed by Visible Alpha were looking for $282.2 million and $181.3 million, respectively.

Restructuring Costs Weigh on Results

Wolfspeed said that during the fiscal first quarter it incurred $87.1 million in restructuring expenses. It anticipates having another $174 million charge in the current quarter.

The company also said it is facing “significant factory start up costs” for the plants it is building or expanding which have not started generating revenue.

Wolfspeed reported a first-quarter loss of $2.23 per share, widening from a loss of $3.16 per share a year ago. Revenue fell 1.4% to $194.7 million.  

Wolfspeed To Cut 20% of Its Workforce

In a conference call with analysts, executives said the closing of a plant in Durham, North Carolina and facility in Farmers Branch, Texas, will lead to an approximately 20% reduction of its workforce, according to a transcript provided by AlphaSense.

CEO Gregg Lowe said Wolfspeed “expects the actions we are taking today will allow us to become a more efficient and agile organization positioned to capture the long-term growth opportunities ahead.” 

Wolfspeed shares were down nearly 30% in intraday trading Thursday and have lost close to three-quarters of their value this year.