The 3D printing manufacturer Velo3D has announced extensive job cuts. The company, known for its metal 3D printers, will lay off around 30% of its workforce. This affects around 63 jobs worldwide.
CEO Brad Kreger justifies this step with the need to optimise business processes and reduce costs. Velo3D expects to spend between 1.1 and 1.7 million US dollars on personnel costs such as wages and benefits. The majority of these payments are to be made in the fourth quarter, with the job cuts expected to be completed by the end of October 2024.
The decision comes at a turbulent time for Velo3D. The last twelve months have already seen management changes, multiple NYSE rule violations and a 1-for-35 stock split.
Despite these challenges, Velo3D continued to record orders for its metal printing systems in the second quarter of 2024 and processed a backlog of USD 17 million. Around 40% of orders this year came from existing customers, while the defence sector accounted for around 20% of orders.
Kreger attributes the staff cuts mainly to delays in the financing of certain government projects. These delays have negatively impacted the sales forecast for the remainder of the year, although the company continues to expect these transactions to be finalised.
In addition to staff reductions, Velo3D has initiated further cost reduction programmes to reduce expenses and secure liquidity. The company expects these measures to generate significant annual savings in operating costs.
Velo3D’s current situation reflects the ongoing challenges in the additive manufacturing industry. Despite promising technologies and growing application areas, many companies in this sector are struggling with economic uncertainties and market volatility.
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