3D Systems
3D Systems HQ
3D Systems has announced a 'multi-faceted restructuring initiative' designed to 'improve operating efficiencies.'
The restructuring includes 'optimising its European metal printer operations' and streamlining its software organisation.
According to 3D Systems, the initiative is expected to reduce operating expenses in 2023 by approximately 2.5 million to 3.5 million USD and provide an annualised savings of approximately 5.5 million to 7.0 million USD in 2024 and beyond.
As a key aspect of the restructuring initiative, the company will consolidate the engineering and manufacturing of its metal printers to reduce cycle time on new product introductions and increase operational efficiencies. The company’s metal AM products include the DMP 200, DMP 350, and DMP 500 direct laser sintering systems.
Another part of the restructuring initiative is streamlining the software development operating structure to further reduce ongoing operating expenses. 3D Systems says that software is an essential element of the company’s future growth strategy.
Over the past year, the company has merged its legacy portfolio of 3D printing applications with the Oqton Manufacturing Operating System organisation. It says that this was to create an integrated end-to-end software suite under a unified management structure. 3D Systems says that the software-related cost savings that have been announced reflect synergies derived from this integration effort.
3D Systems President and CEO Dr. Jeffrey Graves said: “These restructuring efforts are an extension of the work we began in late 2020 to streamline our operational footprint and better leverage our company scale in additive manufacturing. Over the last year, we have made significant process through the focusing of our development activities and by selectively insourcing the manufacture of our high-complexity, high-value 3D polymer printers.
“These efforts have reduced operating costs while improving customer quality and delivery reliability. With momentum established in our polymer platform operations, we will now extend our focus to our metal systems, bringing together and streamlining our engineering and operations teams. With regards to software, through the acquisition of Oqton and the subsequent consolidation of our software platforms under a unified organisational structure, we have now enabled further operational efficiencies to be gained in this key area of the company.
“While we have significant benefits to realise from all of these efforts, they by no means represent the last chapter of efficiency improvements that are available to us. Moving forward, we will continue to implement improvement plans to meet our goal of being the leading, most successful additive manufacturing company in the world.”
This announcement comes after the news of 3D Systems agreeing to pay 27 million USD to the United States in settlement fees after alleged violations of export laws.