Desktop Metal Reports 2023 Cost Reduction Plans
Plans include facility closures and a 15% cut in workforce, according to company release.
February 7, 2023
Desktop Metal, Inc. reports an additional $50 million cost-reduction plan for 2023 that it says will prioritize investments and operations in line with near-term revenue generation, positioning the company to achieve its long-term financial goals, Desktop Metal reports.
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. Essentially, four facilities are slated to be closed and consolidated into these hub locations in the United States. Today’s announced cost reduction plan also includes a workforce reduction of approximately 15%.
This plan, along with the cost optimization and strategic integration initiative commenced in June 2022, is expected to deliver annualized savings of $100 million in 2023. Desktop Metal will provide more detail on the progress of this effort throughout the year, the company reports.
“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,” says Ric Fulop, founder and CEO of Desktop Metal. “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.”
Sources: Press materials received from the company and additional information gleaned from the company’s website.
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