In a move to streamline operations and improve efficiency, Velo3D, Inc., a provider of specialized industrial machinery, has announced a significant reduction in its global workforce. The company disclosed in a recent 8-K filing with the Securities and Exchange Commission that it will be cutting approximately 63 employees, which constitutes about 30% of its total workforce.
The decision, which was made public on August 9, 2024, is part of a broader cost reduction strategy aimed at bolstering operating efficiencies. Velo3D anticipates incurring costs between $1.1 million and $1.7 million, primarily associated with personnel expenses, including wages and benefits. These expenses are expected to be largely disbursed in the fourth quarter of 2024.
The workforce reduction is scheduled to be concluded by the end of October 2024. The company's management has not detailed any specific departments or regions that will be most affected by the layoffs.
The reduction in force is a significant move for the Delaware-incorporated company, which trades on the New York Stock Exchange under the ticker symbol NYSE:VLD and its warrants under NYSE:VLD WS. The company's latest actions reflect the challenging market conditions that have compelled many firms to reevaluate their cost structures and streamline their operations.
In its forward-looking statements, Velo3D expressed caution, noting that the anticipated financial benefits from the workforce reduction could be subject to various risks and uncertainties. These include potential deviations from expected costs and the timeline for executing the reduction plan.
Investors and stakeholders are advised to consider the risks identified in the company's SEC filings, including its Annual Report for the year ended December 31, 2023, and subsequent Quarterly Reports. The company has stated it will not provide further updates on the forward-looking statements unless new information arises or unforeseen events occur that necessitate such disclosures.
This report is based on a press release statement and provides a current view of Velo3D's efforts to manage its operational expenses and workforce in alignment with its strategic objectives.
In other recent news, Velo3D, a metal additive manufacturing firm, has been navigating some significant developments. The company revealed it has been notified by the New York Stock Exchange of non-compliance with certain market capitalization and stockholders' equity requirements.
In response, Velo3D plans to submit a proposal to regain compliance with the listing standards. Meanwhile, the company has made notable strides in its financial performance, with first-quarter revenue for 2024 hitting $10 million, a marked increase from the previous quarter. Despite reporting a negative gross margin of 29%, the company is optimistic about achieving a turnaround in the next quarter and reaching sustainable profitability by the end of the year.
Velo3D's board of directors has also approved a 1-for-35 reverse stock split, aiming to meet the New York Stock Exchange's minimum share price requirement for continued listing. This action is expected to reduce the company's outstanding shares from approximately 297 million to about 8.5 million.
In leadership developments, Brad Kreger, who has been serving as the interim CEO, has been confirmed as the permanent Chief Executive Officer, following his successful implementation of strategic initiatives.
These recent developments reflect Velo3D's focus on improving operating efficiency, margin, and cash flow. The company projects a full-year revenue between $80 million to $95 million. Furthermore, Velo3D has seen improvements in Q1 bookings, particularly from the defense, space, and aerospace sectors, which are expected to positively influence the company's performance throughout 2024.
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