Desktop Metal has announced a further workforce reduction of approximately around 15% with the company implementing an additional 50 million USD cost-reduction plan for 2023.
It follows last summer's announcement that 12% of Desktop Metal staff would be laid off.
This plan will 'prioritise investments and operations in line with near-term revenue generation,' with the company saying it will then be better positioned to 'achieve its long-term financial goals.'
In addition to the redundancies, Desktop Metal will also embark on a 'sweeping effort' to streamline and consolidate several locations in the US and Canada into four hubs. The remaining facilities will be based in Massachusetts, Pennsylvania, Texas and the Midwest.
This latest plan, combined with the 'cost optimisation and strategic integration initiative' that commenced in June 2022, is expected to deliver annualised savings of $100 million in 2023.
“These cost reductions will help us improve margins and reduce costs to accelerate our path to profitability. The additive manufacturing industry continues to mature and expand even in a challenging macroeconomic environment,” commented Ric Fulop, Founder and CEO of Desktop Metal. “Our talent is the critical success factor that helps us drive the industry forward. These actions reinforce our highest priorities and create a flatter, more agile organisation. I value the contributions of everyone who has served and continues to serve Desktop Metal. We are committed to managing this transition with care and respect."
Desktop Metal says it will provide more detail on the progress of this effort throughout the year.
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