Stratasys Lays off 10 Percent of Workers

Share this Article

Stratasys, the marketplace leader in industrial fused deposition modeling technology, has announced that it is laying off 10 percent of its workers worldwide. In a statement, the company seemed to suggest that this workforce reduction was not necessarily related to COVID-19, but that the pandemic caused the plan to be implemented sooner:

“This resizing, advanced sooner due to the impact of COVID-19, will affect approximately 10% of employees, and is designed to reduce operating expenses as part of a cost realignment program to focus on profitable growth. The company expects the vast majority of the reduction to take place in the second quarter and to complete the reduction during the third quarter of this year.”

Since the 3D printing stock market bubble burst in 2014, publicly traded additive manufacturing companies have struggled to regain their footing. At 3D Systems, former CEO Avi Reichental stepped down and was replaced by Vyomesh Joshi who, after seemingly putting the firm back on track, has also stepped down.

Stratasys CEO Yoav Zeif.

Stratasys and its MakerBot subsidiary have cycled through executive leadership much more rapidly, executing multiple rounds of layoffs at MakerBot. Stratasys CEO David Reis was replaced by Ilan Levin in 2016, who resigned in 2018. Now, Yoav Zeif acts as Chief Executive Officer. Of the layoffs, Zeif said:

“This reduction in force is a difficult but essential step in our ongoing strategic process, designed to better position the company for sustainable and profitable growth. I would like to express my appreciation to each of the employees impacted by this decision for their dedicated service. Current conditions make the job market even more challenging, and we have done our best to provide the departing employees globally with a respectable and fair separation. This measure is not expected to affect the progress on our forthcoming product launch plans, which remain a top priority as we lead the industry to new heights with our best-in-class additive manufacturing solutions.”

Stratasys revenues declined 14 percent in Q1 compared to last year. The company believes that, by eliminating labor, it can reduce operating expenses by $30 million, though it will pay out $6 million in severance costs. The 3D printing company is hardly the only one in the additive industry or in industry at large suffering economically at the moment. Numerous AM firms have reported lowered revenues due to the COVID pandemic, with those who have recorded order backlogs from 2019 warning of weaker second quarters.

The recently released Stratasys J55 3D printer.

While layoffs have come to be par for the course during economic downturns, it is not a prerequisite to the survival of a business, though that may depend on the size of the firm. Stratasys is much smaller than the $13B Mondragon Co-Operative Corporation, which avoids displacing workers by relocating them from one area of the business to another. In turn, the company was able to weather the 2008 financial crisis. In 2013, Mondragon’s largest manufacturing company went bankrupt. Instead of instituting layoffs, the employee-owners voted to take small pay cuts and relocated 2,000 workers across the larger business group.

The workforce reduction comes at a time when the U.S. is facing a 21.7 percent unemployment rate, which is potentially adding fuel to the wave of protests against police violence the country is experiencing. Given the current economic situation, it would not be surprising if we see other 3D printing companies execute similar decisions in the near future.

Share this Article


Recent News

MULTI-FUN Consortium Aims to Improve Metal 3D Printing

JCRMRG’s 3D Health Hackathon Aims for Sustainable 3D Printed PPE



Categories

3D Design

3D Printed Art

3D printed automobiles

3D Printed Food


You May Also Like

3D Printing Webinar and Virtual Event Roundup, July 7, 2020

We’ve got plenty of 3D printing webinars and virtual events to tell you about for this coming week, starting with nScrypt’s webinar today. 3Ding and Formlabs will each hold a...

Featured

Interview: Redefine Meat CEO’s Insight into New Alternative Meat & 3D-Printed Food

Amid lifestyle changes toward wellness and health, as well as an inclination of industries to adopt disruptive technologies, the 3D printed plant-based meat industry could go from niche to mainstream...

NIST Grants $1.4 Million to America Makes for 3D Printed PPE

As the COVID-19 pandemic has swept the world and changed life as we know it in many ways—along with opening up many questions for the future—makers, researchers, and medical inventors...

Featured

French Army Deploys Massive Military Print Farm for Spare Parts

The French Army has recently partnered with HAVA3D, a prominent distributor and integrator of additive manufacturing solutions based out of Le Mans, France, to deploy one of the largest 3D...


Shop

View our broad assortment of in house and third party products.