Desktop Metal announces additional $50 million cost-reduction plan with further workforce cuts
February 3, 2023
Desktop Metal, Boston, Massachusetts, USA, has announced an additional $50 million cost-reduction plan for 2023, following the successful conclusion of similar cost savings announced in June last year. Said to prioritise investments and operations in line with near-term revenue generation, the move is an effort to position the company to achieve its long-term financial goals.
A key part of the cost reduction plan will be to consolidate several locations in the United States and Canada into four hubs in Massachusetts, Pennsylvania, Texas, and the Midwest. The company also plans a further workforce reduction of approximately 15%.
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This plan, along with the cost optimisation and strategic integration initiative commenced in June 2022, is expected to deliver annualised savings of $100 million in 2023. Desktop Metal stated it will provide more detail on the progress of this effort throughout the year.
“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,” stated 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.”