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Desktop Metal Cuts 20% of Workforce Amid Cost Reduction Efforts.
Desktop Metal, a leading company in the field of metal additive manufacturing, has announced that it will lay off 20% of its staff as part of its ongoing strategic business review. The company aims to improve its profitability and generate positive cash flow in a challenging market environment.This is the third round of layoffs for Desktop Metal since it went public on the New York Stock Exchange in December 2021. The company had previously reduced its workforce by 12% in June 2022 and by 15% in February 2023. The company also plans to consolidate its facilities and rationalize its product portfolio.
Desktop Metal’s founder and CEO, Ric Fulop, said that the company remains committed to its vision of Additive Manufacturing 2.0, which focuses on mass production of metal parts using 3D printing. He expressed a positive long-term outlook for the industry, despite the current difficulties.
The company expects to incur pre-tax restructuring charges of between $24.3 million and $31.5 million, mostly non-cash, as a result of the latest cost reduction plan. The company will provide more details about its financial performance and outlook in its end-of-year earnings release and conference call, which is expected by the end of March 2024.
Desktop Metal’s stock price has been trading below $1 since October 2023, and the company received a noncompliance notice from the NYSE in November 2023. The company has until May 2024 to regain compliance with the minimum share price requirement. As of January 24, 2024, the company’s stock price was $0.73.
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