Cleveland-Cliffs (CLF) stock plunged 9.31% in pre-market trading on Thursday, following the release of disappointing first-quarter 2025 financial results and the announcement of significant operational changes. The steel and iron ore producer reported wider-than-expected losses and missed revenue estimates, sparking concern among investors.

The company reported a Q1 adjusted loss of $0.92 per share, significantly below the analysts' consensus estimate of $0.77 per share. Revenue for the quarter came in at $4.6 billion, falling short of the expected $4.637 billion. Cleveland-Cliffs also posted a net loss of $483 million, much higher than the anticipated loss of $364.4 million. The adjusted EBITDA for the quarter was negative $174 million, considerably worse than the estimated negative $82.6 million.

In response to these challenging market conditions, Cleveland-Cliffs announced plans to fully or partially idle six facilities between March and May. This strategic move is expected to result in annual savings of over $300 million. CEO Lourenco Goncalves stated that the company is repositioning its portfolio away from non-core markets, including rail, high-carbon sheet, and specialty plate products, to focus more on the automotive industry. While these cost-cutting measures aim to improve the company's financial position in the long term, they appear to have added to investors' concerns in the short term, contributing to the stock's significant pre-market decline.