As the stock markets closed Wednesday, Cree (Nasdaq: CREE) announced a restructuring plan, a big cut in its revenue forecast and a $500 million share buyback plan. Wall Street reaction was immediate: Shares began dropping.

The slide continues this morning with shares down 10 percent, hitting a new 52-week low at about half its 52-week high.

Will there be layoffs among Cree’s Triangle work force of some 2,600?

Cree Chairman and CEO Chuck Swoboda wouldn’t talk about possible job cuts in Durham, where Cree manufactures LEDS, or at other LED facilities in China. But consolidation is expected as part of the $85 million restructuring plan.

The Durham-based company said sales of LED bulbs to consumers and under utilization of LED manufacturing triggered the restructuring.

Shares fell more than 2 percent immediately from Wednesday’s closing price of $30.56 and fell several more percentage points later on in after-hours trading.

“Due to recent LED market trends that have resulted in higher LED average selling price erosion than previously forecast and the continued under-utilization of Cree’s LED factory, the company has decided to restructure the LED Products business to reduce excess capacity and overhead to improve the cost structure moving forward,” Cree announced.

“Additionally, the company is increasing LED reserves to reflect the more aggressive pricing environment experienced in the current quarter, and to factor in a more conservative pricing outlook for fiscal year 2016.”

Cree cut its revenue forecast to $375 million for the current quarter, well under analysts’ expectations of more than $430 million. Some $27 million in revenue will be put into “reserves” for the LED business.

“LED Products customer unit demand is generally in-line with our targets for the quarter; however, the combination of the revenue reserves and lower pricing in the quarter is forecast to reduce fiscal Q4 revenue by approximately $35 million,” Cree said.

However, Cree said it’s still proceeding with plans to spin off its radio frequency business, which is to be led by veteran Triangle tech executive Frank Plastina.

Cree noted some positive news.

“Lighting Products revenue is targeted to increase slightly sequentially, as strong growth in commercial lighting is expected to more than offset a greater-than-targeted seasonal slowdown in consumer bulb sales,” the company said.

“Power & RF [radio frequency] Products revenue is tracking in-line with the company’s targets for fiscal Q4.”

Cree also is seeking to bolster its share price with a $500 million buyback plan. The company only recently completed a $550 million buyback.

Cree shares are down sharply from a 52-week high of $53.33 and could be headed for its previous low over the past year of $27.25 when markets open today if the after-hours action Wednesday is any indication of what.s to come.

In January, a contractor laid off 319 workers who had done work for Cree.