#3DExpress: Desktop Metal Announces Further Layoffs in New Cost Reduction Measures

#3DExpress is our newest article format, which brings you some of the most interesting news from the week in a bite-sized format. This week, learn more about the new cost reduction plan announced by Desktop Metal, expected to start showing results by the end of Q1 2024, including layoffs of 20% of its workforce. We also tell you more about Prodways’ decision to stop the sale of its jewelry 3D printers, a recent report showing the continued growth of the construction 3D printing market, the Development Bank of Japan’s recent investment in 3DEO and Wayland Additive’s successful funding efforts. Happy reading and have a great weekend!

Desktop Metal Announces New Reduction Plan and Layoffs

After the failure of the Desktop Metal – Stratasys merger last year, questions have remained about the company. This has only increased in recent months, including after the news broke about the NYSE non-compliance notice in December. However, this week, the company started making moves through the announcement of a cost reduction plan that anticipates annual cost savings of $50 million. Similar to previous cost reduction measures from Desktop Metal, the move also includes layoffs with the company announcing that it will be reducing its workforce by 20%, building off of previous reductions of 12% and 15% respectively. Talking about the move, Ric Fulop, Desktop Metal CEO and Founder, stated, “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. While our industry is working through a challenging period, Desktop Metal’s commitment to its Additive Manufacturing 2.0 vision has not changed. We continue to have a positive long-term outlook for this industry as it transitions to mass production.”

Desktop Metal has announced further cost reduction measures, including layoffs for 20% of its workforce (photo credits: Desktop Metal)

The 3D Printing Construction Market Continues to Grow

This week, Research and Market published a new study on the 3D printing market in the construction sector. It predicts that the market will reach a value of over $11 billion by 2030, representing an estimated annual growth rate of 44% over the period analyzed. In 2022, it was worth $629 million. We are therefore witnessing a veritable boom in additive manufacturing in construction, which is hardly surprising given the various projects we have seen developed over the past two years. The technology offers significant advantages and could provide some answers to the housing crisis.