Desktop Metal to cut more than 160 jobs as part of cost reduction plan

Shares of Desktop Metal Inc. sank 4.3% in premarket trading Monday, after the Massachusetts-based 3-D printing company said it will lay off about 12% of its workforce as part of its cost-cutting plan. Based on 1,370 employees the company had as of Dec. 31, the cuts could affect about 164 employees. The company said its cost-cutting plan, which will include facility consolidations and tighter product focus, is projected to lead to annualized savings of about $40 million, including $20 million of which is to take place in the second half of 2022, and lead to total cost savings of $100 million over the next 24 months. The company expects to incur charges of $14.0 million related to the job cuts, with about $11 million of the charges to be incurred in the second quarter. “Today’s announcement of our strategic integration and cost optimization initiative is the result of a comprehensive portfolio and business operations review conducted across all functions at Desktop Metal,” said Chief Executive Ric Fulop. The stock has plunged 57.2% year to date through Friday, while the S&P 500 has declined 18.2%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.