Additive manufacturing technology developer Desktop Metal Inc. announced an additional $50 million in cost cuts for 2023, adding that it will prioritize near-term revenue generation, but still long-term financial goals. “These cost reductions will help us improve margins and reduce costs to accelerate our path to profitability,” stated CEO Ric Fulop.
The primary move is to consolidate Desktop Metal’s U.S. and Canada locations into four “hubs,” in Massachusetts, Pennsylvania, Texas, and the Midwest. Specific details for those locations and the activities assigned to those hubs were not provided. The schedule for implementing the streamlining program also was not detailed.
Overall, the business will implement a workforce reduction of approximately 15%, according to its announcement.
Desktop Metal develops and supplies binder-jet additive manufacturing systems that print parts or structures in metal, ceramic, polymer, composites, or sand. It also supplies programming and processing software for those systems.
The new reorganization follows a similar move in June 2022 by which Desktop Metal reduced its workforce by 12% and “consolidated” its global business. That revamping was portrayed against a series of acquisitions during the preceding year – including purchases of AM system developers ExOne Co. and EnvisionTEC; 3D-printing businesses Aidro and Aerosint; and polymer resin supplier Adaptive3D.
Desktop Metal said its new reorganization, together with “the cost optimization and strategic integration initiative commenced in June 2022,” would result in annualized savings of $100 million this year.
“The additive manufacturing industry continues to mature and expand even in a challenging macroeconomic environment,” Fulop continued. “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."