Protolabs is to discontinue its Direct Metal Laser Sintering services through its 3D printing facility in Putzbrunn, Germany.
The company's restructuring plan also includes the shut down of its prototype injection moulding manufacturing facility in Eschenlohe, Germany.
Protolabs expects to ‘substantially complete’ this plan within the next year, with affected employees receiving severance and other transition assistance.
According to a Form 8-K filed by Protolabs earlier this month, the plan. Is expected to lead to total restructuring charges between 4.5-6.0 million USD, including 2.5-3.5 million USD in severance and other employee-related costs, and 2-2.5 million USD in fixed asset and facility write-down expenses. Around 4.0 million USD of this restructuring charge is expected to be incurred in the fourth quarter of 2024, with the remaining charge to be incurred during the remainder of the restructuring process.
Protolabs will continue to provide metal additive manufacturing services through its presence in North America, while the company’s European footprint still includes sites in Germany, the UK, Sweden, Italy and the Netherlands.
The company reported steady growth of revenue and net income in the second quarter of 2024 compared to the same period in 2023, with total revenue up 2.8% and revenue per customer contact up 7%. Despite this, the company’s share value has been on the decline since the turn of the year, with stocks dropping from 40.00 USD per share to its current value of 27.49 USD.
Protolabs was founded in 1999 and has become one of the leading providers of additive manufacturing and rapid prototyping services, while also carrying expertise in CNC machining, sheet metal production, and injection moulding. In 2021, the company acquired 3D Hubs, which has since been rebranded to the Protolabs Network.
