Press release
DMC GLOBAL REDUCES WORKFORCE BY APPROXIMATELY ONE THIRD TO ADDRESS ECONOMIC DOWNTURN AND CONTRACTION OF CORE MARKET
BROOMFIELD, Colo., April 01, 2020 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported it has reduced its workforce by 264 positions, 97 of which
About this update from Dmc Global Inc.
[{"type":"text","content":"BROOMFIELD, Colo., April 01, 2020 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported it has reduced its workforce by 264 positions, 97 of which were temporary workers. The reduction, which eliminated approximately one third of DMC’s workforce, was taken primarily to address sharply lower activity levels in the Company’s core oil and gas end market. The workforce reduction principally impacted full-time, part-time and temporary direct-labor roles in manufacturing and assembly at DynaEnergetics, DMC’s oilfield products business. Several general and administrative positions also were eliminated at DynaEnergetics, as well as at DMC’s corporate office, and at NobelClad, DMC’s composite metals business. Additionally, DynaEnergetics’ manufacturing facilities in the United States and Europe have transitioned to reduced work weeks. DMC expects to incur related cash severance costs of approximately $820,000 during the first quarter.\n A steep decline in energy demand has resulted in a sudden slowdown in well-completion activity, reducing orders for DynaEnergetics’ well perforating systems. Kevin Longe, president and CEO of DMC, said, “This workforce reduction is a difficult and unfortunate process, but it is essential we realign the size of our organization to match the smaller size of our addressable market. We hope to offer impacted employees an opportunity to rejoin the company when our markets improve.” Longe added, “The challenges associated the market downturn have not altered DMC’s long-range strategy. We will continue investing in the development of differentiated, high-value products that strengthen our customers’ operations and enhance their profitability. We have a solid balance sheet and a resilient business model, and we expect to emerge from this downturn a strong company that continues to lead its respective industries and delivers value to its stakeholders.” About DMCDMC Global is a diversified holding company. Our innovative businesses provide differentiated products and services to niche industrial and commercial markets around the world. DMC’s objective is to identify well-run businesses and strong management teams and support them with long-term capital and strategic, legal, technology and operating resources. Our approach helps our portfolio companies grow core businesses, launch new initiatives, upgrad...