3D printer Desktop Metal stock jumps after plan to cut jobs, that could affect more than 200 employees

Shares of Desktop Metal Inc.
DM,
+10.71%
jumped 6.5% toward a two-month high in premarket trading Thursday, after the Boston-based 3D printing company said it would lay off about 15% of its employees and close four facilities. The moves are part of a cost-cutting plan, of which the company doubled its targeted annual savings to $100 million in 2023. The job cuts could affect about 205 employees, as the company had 1,370 employees at the end of 2021, according to the latest annual report. “These cost reductions will help us improve margins and reduce costs to accelerate our path to profitability,” said Chief Executive Ric Fulop. “The additive manufacturing industry continues to mature and expand even in a challenging macroeconomic environment.” The stock has tumbled 25.0% over the past three months, while the S&P 500
SPX,
+1.05%
has gained 9.6%.