Burlington, Massachusetts-based 3-D printing company Desktop Metal is cutting more workers after its merger with rival Stratasys fell through last year.
The company will lay off 20 percent of its employees, Desktop Metal said in a securities filing without specifying how many workers will be affected. The company had 1,200 workers at the end of 2022 but cut 15 percent last February.
“We are committed to getting profitable during this challenging period,” chief executive and founder Ric Fulop said in a statement. “We continue to have a positive long-term outlook for this industry as it transitions to mass production.”
Last year, Desktop Metal had planned to merge with larger rival Stratasys, based in Minnesota and Israel. But the $600 million deal fell apart in September after Stratasys shareholders rejected the plan.
The merger would have combined Desktop Metal’s printing technology using metals, composites, and wood with Stratasys’s plastic-based tech. Desktop Metal was founded in 2015 by Fulop and a group of MIT professors, including Ely Sachs, who invented the method known as binder jet printing, which sprays liquid onto layers of powder to form products.
Shares of Desktop Metal closed at about 61 cents on Wednesday, down 17 percent. Since going public by merging with a special purpose acquisition company, or SPAC, in December 2020, Desktop Metal’s stock price has lost more than 90 percent.
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