Desktop Metal announced a 20% job reduction as part of an additional $50 million cost reduction plan. The latest cost reduction plan is the third such initiative announced by the company since its listing on the New York Stock Exchange. In June 2022, Desktop Metal laid off 12% of its employees, with another 15% laid off in February 2023.
The funds saved as a result of cost reduction are intended to bring the company to profitability. The company also announced that it will seek to continue consolidating its facilities and optimizing its product offerings. This latest action is expected to result in pre-tax restructuring charges ranging from S$24.3 million to S$31.5 million, with all non-cash charges ranging from S$5.3 million to S$7.5 million.
“The cost reduction plans announced today, in addition to the $100 million in cost reductions realized in 2023, will help us generate positive cash flow in light of lower demand,” commented Ric Fulop, founder and CEO of Desktop Metal. “We want to achieve profits in this difficult period. The vast majority of cuts will be completed this quarter, resulting in further cost reductions in the first half of 2024.”
Desktop Metal has already notified U.S. employees affected by the job cuts, while the company continues to review international employment regulations as it relates to employees working in Europe.
Source: www.desktopmetal.com