Stratasys layoffs will impact roughly 10 percent of employees, the 3D printer company disclosed today. The cuts will allow the business to "focus on profitable growth."
It sounds like the layoffs were planned even before the coronavirus pandemic impacted international economies. But the plan was "advanced sooner" than originally planned because of the pandemic, Stratasys said.
Stratasys develops FDM, PolyJet, and stereolithography 3D printers. The company’s technologies are used to create prototypes, manufacturing tools, and production parts for aerospace, automotive, healthcare, consumer products and education.
In a prepared statement about the cuts, Stratasys CEO Yoav 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 Q1 2020 revenue was $132.9 million, down 14.4 percent compared to $155.3 million for the corresponding quarter last year. GAAP net loss for the quarter was $21.7 million, compared to a net loss of $2.3 million for the corresponding period last year. Stratasys blamed the weak results, disclosed May 14, on the pandemic.
3D Printer Market Forecast, Hardware Layoffs
3D printing remains a growth market -- but perhaps not quite the growth opportunity that hardware makers originally expected. The 3D printer market is expected to reach $40.8 billion by 2024 -- representing a 26.4 percent compound annual growth rate (CAGR) from 2020, according to Statistica.
Meanwhile, the inkjet printing market will reach $109 billion in 2023, up from $69.6 billion in 2018, according to Smithers.com.
Amid the pandemic, it's a safe bet 2020-related forecasts for all types of printers will fall short of original projections. Also, multiple hardware, software and cloud companies have confirmed layoffs during the pandemic. See the complete list here.
