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August 6, 2015 10:13 AM EDT

In releasing its third quarter earnings after the market closed on Wednesday, Keurig Green Mountain announced some bad news: it’s planning to cut 5% of its workforce. The company has 6,600 full-time, part-time, and seasonal employees, according to its 2014 annual report.

Following the news, shares of the K-cup maker plunged in after-hours trading Wednesday and were off some 3o% in Thursday morning trading.

The company said that the reduction in headcount is part of a “productivity plan” to reduce costs by $300 million over the next three years. Approximately $100 million of that savings is expected in fiscal year 2016.

The cut in costs comes as the company reported dismal sales of its signature products. Sales of its packaged coffee pods, or K-Cups, fell 1%. Sales of brewers and accessories plummeted 26%. The company’s revenue declined 5% to $969 million and net income dropped 27% to $113.6 million.

Company president and CEO Brian Kelley said the productivity program, which includes the job cuts, will enhance the company’s operational effectiveness and allow it to “fund incremental investment in innovation and brand building.” He also staked big hopes in Keurig’s new K200 brewer—sales of which, he said, are off to a “strong start.”

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