Desktop Metal will cut another 15% of its workforce as part of a $50 million cost reduction plan

Desktop Metal announced further layoffs, this time reducing their number by approximately 15%. In this way, the company is implementing a cost reduction plan for 2023, which is expected to amount to USD 50 million. Last year, Desktop Metal already laid off 12% of its existing workforce. The ongoing restructuring plan, which began in June 2022, is expected to generate annual savings of $100 million throughout 2023.

According to Ric Fulop, the company’s founder and CEO, the savings plan is intended to “prioritize investments and operations according to short-term revenue generation” and better prepare the company to “achieve long-term financial goals.” In addition to the layoffs, Desktop Metal also intends to make “extensive efforts” to streamline and consolidate its US and Canadian facilities into four centers. Facilities will be located in Massachusetts, Pennsylvania, Texas and the Midwest.

“These fixed cost reductions will help us improve margins and reduce costs to accelerate our path to profitability. The additive manufacturing industry continues to mature and grow even in a challenging macroeconomic environment,” said Fulop. “These actions reinforce our highest priorities and create a flatter, more agile organization. I value the contributions of all who have served and continue to serve Desktop Metal. We are committed to managing this change with care and respect.”

Desktop Metal says it will provide more details on the progress of these efforts over the course of the year.

Source: www.desktopmetal.com