Velo3D is set to make a further 46 people redundant before the end of the year in its latest 'reduction in force' plan.
A Form 8-K document date October 9, 2024 and signed by CEO Brad Kreger on October 11, 2024 states that the company has commenced an additional workforce reduction plan, with approximately 32% of the company's workforce to be affected.
In August, Velo3D confirmed a workforce reduction initiative would eliminate 63 jobs (approximately 30% of its workforce at the time), bringing down the number of staff from around 210 to 147 by the end of October. This latest wave of redundancies will therefore bring the total number employed by Velo3D to around 100.
Velo3D states that this latest reduction in force is being made to 'streamline business operations, reduce costs and create further operating efficiencies.' The company will incur approximately 1.3 million USD to 1.5 million USD in costs, covering personnel expenses such as salaries, one time severance payments and other benefits. The reduction in workforce is expected to be completed in December 2024, with the aforementioned expenses being paid out during the fourth quarter of 2024.
Last month, Velo3D's stock was delisted from the New York Stock Exchange, with the company instead commencing trading on the OTCQX Best Market under the VLDX ticker. It came after several New York Stock Exchange noncompliance notices, a 12 million USD reasonable best efforts public offering and a 1-for-35 reverse stock split. Despite its subpar financial performance and stock market noncompliances, Velo3D has managed to secure several new and repeat orders of its metal additive manufacturing machines, with SpaceX also licensing the company's technology in an 8 million USD deal in September.
In February, CEO Brad Kreger discussed the potential sale of the company and addressed Velo3D's aggressive growth plans after it first listed publicly.
