Desktop Metal announces plans for $50 million cost reduction
Which includes reducing the company's workforce by 15%
Desktop Metal is planning an additional $50 million cost reduction for 2023 that will prioritize investments and operations in line with near-term revenue generation – positioning the company to achieve its long-term financial goals.
A key part of the cost reduction plan is an effort to streamline and consolidate several locations in the United States and Canada into four hubs – in Massachusetts, Pennsylvania, Texas, and the Midwest. The cost reduction plan also includes a workforce reduction of approximately 15%.
This plan, along with the cost optimization and strategic integration initiative commenced by the company in June 2022, is expected to deliver annualized savings of $100 million in 2023. Desktop Metal is expected to 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,” said 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 organization. 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.”