The US 3D printer manufacturer Desktop Metal has reduced its workforce by 20% as part of another cost-cutting program. This is the third staff reduction since the IPO in November 2020. Desktop Metal had already cut 12% and 15% of its workforce in June 2022 and February 2023 respectively. According to the company, the renewed cost reduction is intended to accelerate the path to profitability.
Desktop Metal justifies the cost-cutting measures with weakened demand. “Together with the USD 100 million in cost reductions already achieved, the program announced today will enable us to achieve a positive cash flow despite a softer market environment,” comments company founder Ric Fulop. Overall, Desktop Metal aims to halve costs year-on-year. Most of the redundancies are to be announced in the first quarter.
“Although the industry is currently going through a difficult phase, our vision for additive manufacturing has not changed. We remain positive about the long-term prospects,” says Fulop.
In addition to downsizing the workforce, Desktop Metal is pursuing other measures such as streamlining the office space and streamlining the product portfolio. The current redundancies will cost the company between USD 24.3 and 31.5 million, of which USD 5.3 to 7.5 million will be severance payments. The remainder consists of write-offs.
The American employees affected will be informed of their redundancy on January 24. Further staff cuts are imminent internationally. Further details will be published shortly in the financial reports.