Hartland-based
Fathom Digital Manufacturing will close its lone Florida facility due to ongoing profitability challenges.
Fathom’s board of directors authorized company management to close the Miami Lakes, Florida facility due to “persistent and continuing profitability challenges” at the location, according to an SEC filing. Approximately 50 people work at the location. Across the country, Fathom has 10 other locations.
Closing the facility is expected to cost about $3.2 million, consisting of $600,000 in severance, $2.4 million in fixed asset and facility write-down expenses, and $200,000 in other associated costs. The full closure of the Miami Lakes, Florida facility will be completed by the end of the second quarter of 2024.
Fathom has been continually working through a company optimization plan, which aims to reduce the manufacturer’s costs by $19.5 million.
At the end of the third quarter of 2023, Fathom had reduced overall expenses by approximately $13 million. At the start of the fourth quarter, newly appointed chief executive officer
Carey Chen said Fathom was projecting another $4 million in cost savings stemming from the optimization plan.
Since the end of 2022, Fathom has been continually dealing with a slowdown in customer spending and economic uncertainty. The company reported that its third quarter revenue decreased 21.8% from $40.2 million in 2022 to $31.5 million in 2023.
After being named CEO
last October, Chen unveiled his strategies for
improving Fathom’s profitability. One strategy involves Fathom working with companies that are more “recession proof” and have positive megatrends. This will include markets and industries that are less cyclical, such as electric vehicle manufacturing.
