Financial ReportsMoney & FundingTrends 2022

Desktop Metal to lay off 160 staff, WSJ reports

Stay up to date with everything that is happening in the wonderful world of AM via our LinkedIn community.

According to a story that we first saw on MarketWatch, authored by WSJ journalist Will Feuer, production AM hardware manufacturer Desktop Metal will lay off 160 staff, which is about 12% of its current workforce, as it seeks to control costs after a string of acquisitions last year.

While Desktop Metal acquired several young startups (Aerosint, Meta Additive, Forust) and smaller strategic companies (Aidro) to further develop their technologies and applications know-how, the main redundancies are likely to be found in the larger acquisition, ExOne and EnvisionTEC (rebranded ETEC), as the company has been implementing a streamlining strategy along with brand coordination.

According to Feuer, the company, which offers additive manufacturing technologies focused on the production of end-use parts, said it expects to take a one-time charge tied to termination benefits of about $14 million, most of which are expected in the second quarter of 2022. That doesn’t include lease-termination costs, the company said.

AM 2022 Trends
(Image: Desktop Metal)

While it is true that Desktop Metal stocks have lost over 80% of their value since the initial listing (via SPAC merger), and is very far from its peak value of $31 (something not entirely uncommon for 3D printing-related stocks, which are among the most volatile that exist), such cost reduction initiatives are likely relatively standard consequence of a very complex merger, between multiple companies operating in the same or similar segments.

Desktop Metal said it expects its cost-optimization plan to be substantially complete by the end of 2023. The plan is expected to result in about $40 million of annualized run-rate adjusted cost savings, and at least $100 million of aggregate cost savings over the next 24 months.

Desktop Metal Chief Executive Ric Fulop said the company’s 2021 acquisitions increased its cost base and global facilities footprint. He said the optimization plan is the result of a comprehensive operations review.

The company is still reviewing international workforce changes, it said, though the impact to the US workforce will be announced to employees Monday. As of March 31, Desktop Metal had more than $317 million in cash, cash equivalents and short-term investments, the company said.

Research 2022
Polymer AM Market Opportunities and Trends

741 unique polymer AM companies individually surveyed and studied. Core polymer AM market generated $4.6 billion...

3D Printing Media Network

3D Printing Media Network is the online trade media portal published by 3dpbm, a leading marketing and market research firm specializing in the AM industry. 3dpbm also publishes the 3D Printing Business Directory, the AM Focus eBook series and the 3dpbm Research AM Market Reports. 3D Printing Media Network was founded with the goal to provide the latest industry news, insights and opinions to a global audience of professionals and decision makers.

Related Articles

Back to top button

We use cookies to give you the best online experience and for ads personalisation. By agreeing you accept the use of cookies in accordance with our cookie policy.

Privacy Settings saved!
Privacy Settings

When you visit any web site, it may store or retrieve information on your browser, mostly in the form of cookies. Control your personal Cookie Services here.

These cookies are necessary for the website to function and cannot be switched off in our systems.

In order to use this website we use the following technically required cookies
  • PHPSESSID
  • wordpress_test_cookie
  • wordpress_logged_in_
  • wordpress_sec

Decline all Services
Accept all Services

STAY AHEAD

OF THE CURVE

Join industry leaders and receive the latest insights on what really matters in AM!

This information will never be shared with 3rd parties

I’ve read and accept the privacy policy.*

WELCOME ON BOARD!