#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.
Prodways Stops the Sale of its Jewelry 3D Printers
Prodways, a leading manufacturer of additive manufacturing solutions, has just announced the decision to stop selling 3D printers intended for jewelry. This strategic shift comes in the wake of results in 2023, where these small wax and resin 3D printers, sold under its Solidscape brand, experienced weak sales, low turnover and significant operating losses. With this decision, Prodways expects to reallocate its resources to boost its high-volume industrial 3D printing solutions, as well as its high value-added materials. According to its team, growth in this segment is easier to activate and will support higher profitability. In turn, this move will enable the French company to strengthen its position in the additive manufacturing market.
The Development Bank of Japan Invests in 3D Printing
In positive news for the development of additive manufacturing in Japan, the Development Bank of Japan (DBJ) and Epson (one of the country’s largest electronics companies) have announced that they are investing in 3DEO. For those who may not have heard of it, the North American startup is known for its proprietary end-to-end 3D printing ecosystem for the creation of complex metal parts. The investment will support the company’s growth not just in the US but also in Japan. It also marks a change in attitude in Japan, which traditionally has preferred conventional metalworking, notably precision casting. The move is also expected to help drive AM adoption in Japan as the DBJ seeks to innovate and restructure the manufacturing industry.
The 3DEO team in front of the headquarters (photo credits: 3DEO)
Wayland Additive Secures €4.2M in Funding
Wayland Additive has announced that it has raised €4.2 million in funding in efforts to grow their global customer base. The UK-based company was born from the University of Sheffield’s Department of Materials Science and Engineering and has become known for its Calibur3 metal additive manufacturing machines. These use electron beam 3D printing technology for the creation of geometrically complex metal parts and have been adopted across North America and Europe in sectors like aerospace, mining, engineering, medical, motorsports and defense. Discussing the funding, Will Richardson, the CEO of Wayland, commented, “Wayland has grown exponentially over the past year, with this latest raise representing a major milestone for our business as we continue to seek additional funding over the coming year. After a successful 2023, we’re setting our sights on further developing our in-house production capacity and increasing our global customer base to enable more sectors to benefit from our cutting-edge electron beam printing technology.”
The Calibur3 metal 3D printing solution from Wayland Additive (photo credits: Wayland Additive)
What do you think of the latest Desktop Metal layoffs? Did any of the other news in this week’s #3DExpress surprise you? Let us know in a comment below or on our LinkedIn, Facebook, and Twitter pages! Don’t forget to sign up for our free weekly newsletter here, the latest 3D printing news straight to your inbox! You can also find all our videos on our YouTube channel.
