Desktop Metal, Inc. (NYSE: DM), a global leader in additive manufacturing technologies for mass production, today announced an additional $50 million cost-reduction plan 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.
Highlights
- Successful execution of June 2022 cost savings initiative delivered $50 million in annualized savings
- Plan announced today adds additional $50 million, to deliver an aggregate savings of $100 million per year, double the target outlined in 2022
- Four facilities are slated to be closed and consolidated into hub locations in the United States, and a workforce reduction of approximately 15% is planned
- Reduction plan will improve margins, reduce COGS, and operating expenses and strengthen Desktop Metal’s position as a leader in Additive Manufacturing 2.0
Desktop Metal today announced an additional $50 million cost-reduction plan 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 a sweeping effort to streamline and consolidate several locations in the United States and Canada into four hubs in Massachusetts, Pennsylvania, Texas, and the Midwest. 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.
“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.”
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