Wolfspeed Inc. (NYSE: WOLF) shares plummeted in after-hours trading on Monday, November 6, 2024, following the company's disappointing financial results for the first quarter of fiscal year 2025 and the announcement of a major restructuring plan to streamline its operations and accelerate the transition to a 200mm silicon carbide platform.

The semiconductor manufacturer reported revenue of $194.7 million for the quarter ended September 29, 2024, missing analysts' estimates of $200.4 million. The company also posted a GAAP net loss of $282.2 million, or $2.23 per diluted share, significantly wider than the $123.6 million loss in the same period last year.

In response to a broader slowdown in demand, particularly in the electric vehicle (EV) market, Wolfspeed unveiled plans to close its Durham 150mm fabrication facility, reduce its workforce by 20% over the next six months, and consolidate its manufacturing footprint. These initiatives are expected to yield approximately $200 million in annual cash savings, as the company accelerates its transition to a pure 200mm silicon carbide platform.

Wolfspeed expects to incur $174 million in restructuring-related costs in the second quarter of fiscal 2025, in addition to the $87.1 million incurred in the first quarter, primarily for severance and other facility closure costs. The company also lowered its revenue guidance for the second quarter, projecting revenue in the range of $160 million to $200 million, below analyst estimates of $214.6 million.

Following the disappointing results and restructuring announcement, Wolfspeed's shares plunged as much as 22.7% in after-hours trading on Monday.