3D printing company Desktop Metal to cut workforce 12%, consolidate facilities

Desktop Metal Inc. announced June 13 a plan to cut costs by $40 million, with $20 million in cost-cutting to take place in the second half of 2022. The additive manufacturing company says that a least $100 million of aggregate cost savings could be realized over the next 24 months.

The cost-saving measures include shrinking the company’s workforce approximately 12%, consolidating global facilities, and narrowing focus to products and development programs that prioritize near-term revenue and margin expansion across high-growth applications.

“We believe this initiative ... positions Desktop Metal to meet our near- and long-term financial commitments and supports our path to profitability.” — Desktop Metal CEO Ric Fulop

“In 2021, we demonstrated significant growth, expanding our portfolio of products into new markets and innovative materials,” said Desktop Metal’s founder and CEO, Ric Fulop. “While the acquisitions we completed in 2021 contributed to this growth and to our total market opportunity as we focused initially on harvesting product and go-to-market synergies, they also increased our cost base and global facilities footprint.

“We believe this initiative, which builds on steps we began to take in the second half of 2021 to integrate our teams, positions Desktop Metal to meet our near- and long-term financial commitments and supports our path to profitability,” Fulop said.