Desktop Metal announces additional $50M in cost reduction, workforce cuts

Desktop Metal announced an additional $50M cost-reduction plan that includes a 20% workforce reduction designed to align its cost structure to current market dynamics. The effort is part of a broader strategic business review and other actions, including continued consolidation of facilities and product rationalization, aimed at accelerating DM‘s path to profitability in the midst of a downturn in the additive manufacturing industry. “The cost-reduction plans announced today, in addition to the $100 million in cost reductions realized in 2023, will help us generate positive cash flow in light of a softer demand environment,” said Ric Fulop, Founder and CEO of Desktop Metal. “We are committed to getting profitable during this challenging period. The vast majority of the cuts will be completed this quarter, resulting in sequential cost reductions across the first half of 2024. This latest action is expected to result in pre-tax restructuring charges of $24.3M to $31.5 M. The majority of those estimated charges are non-cash, with an estimated $5.3M to $7.5M of the restructuring charges coming from cash reserves. .