Burlington-based 3-D printing firm Desktop Metallic stated Thursday it’s chopping about 15 % of its workforce, the most recent in a wave of native tech companies thinning their worker ranks.
Desktop Metallic — which operates two amenities in Burlington, one in Wilmington, and one in Woburn — employed roughly 1,200 folks worldwide previous to the layoffs, that means the cuts will affect roughly 180 staff.
The corporate didn’t disclose what number of staff from Massachusetts can be laid off, however CEO and cofounder Ric Fulop known as it “extra of a worldwide adjustment.”
Desktop — which sells a spread of 3-D printers that work with supplies like metallic, wooden, and ceramics, and has lately expanded its burgeoning dental printing enterprise — noticed its inventory droop 73 % final yr as massive paydays proved elusive and the broader tech sector suffered.
Along with layoffs, the corporate can also be planning to shut 4 of its amenities (none in Massachusetts) and consolidate a number of places within the US and Canada to 4 “hubs” in Massachusetts, Pennsylvania, Texas, and the Midwest. These measures are all a part of an effort to convey Desktop Metallic to profitability, Fulop stated in an interview.
“That is one thing we don’t do calmly. We love the folks we work with,” stated Fulop. “Even when we now have some reductions in workforce as we speak, we’ll proceed to develop components of the enterprise, however now do it on a worthwhile foundation.”
Fulop pointed to macroeconomic traits — rising rates of interest, plummeting shares, and lower-than-expected revenues — as the explanation for the cost-cutting strikes. “Issues went from ‘progress in any respect value’ to the flexibility to principally attempt to have worthwhile progress,” he stated.
Desktop Metallic’s inventory was up greater than 19 % on the layoff information.
The price-cutting strikes come after comparable efforts the corporate made final June, when Desktop got down to save $50 million on an annualized foundation. It achieved that, Fulop stated, and the extra layoffs and restructuring are supposed to double that for a complete of $100 million in annual financial savings. Desktop’s market capitalization presently stands at about $700 million.
“We’re all the time adjusting primarily based on macroeconomic and different situations, however we now have a progress business the place we’re a pacesetter in lots of main segments, and we’ve bought to assist our prospects,” he stated. “A part of that’s to have a sustainable firm that’ll be round for a very long time.”