CVD Equipment has parted ways with its chief executive officer and plans to cut its workforce in half in a sweeping restructuring.

The company said that its board and ex-CEO Emmanuel Lakios mutually agreed that he would step down as CEO and a board member last week. The board appointed Warren Cheesman, vice president of manufacturing operations, as acting CEO.

CVD also said it will no longer seek new system orders for its equipment business and focus instead on spare parts, quartz, and services.

"In light of continued weakness in prospective equipment order activity, declining backlog, the CVD equipment division's ongoing operating losses, and the lack of viable strategic alternatives for the business, we have decided to discontinue the pursuit of new equipment system orders, transitioning CVD to a spare parts, quartz and services business," CVD's board chair, Lawrence Waldman, said Thursday.

As part of the restructuring, CVD plans to cut its workforce by roughly half, keeping a necessary staffing level to manufacture its remaining equipment backlog and support other areas of the business.

The company said it expects to record a restructuring charge of between $800,000 and $1 million this quarter, primarily consisting of employee severance and related costs.

CVD said it exited the second quarter with $23.5 million in cash and no debt. Cheesman, the acting CEO, said the company will focus on fulfilling existing customer commitments and prudent financial management.

Shares fell 21% to $4.94 in after-hours trading on Thursday. The stock closed down 2.3% at $6.27, and has about doubled in value this year.