3D printing firm Stratasys to slash 15% of its workforce, including 80 jobs in Israel
Company says global cuts aim to generate $40 million in annual cost savings as it is struggling to attract new capital investments
Sharon Wrobel is a tech reporter for The Times of Israel.
Israeli-American 3D-printing firm Stratasys announced on Thursday that it is cutting about 15 percent of its global workforce by the end of the year, including an estimated 80 employees in Israel, as part of a restructuring effort to save costs during challenging times.
Nasdaq-traded Stratasys, with offices in Rehovot and Minneapolis, is a maker of industrial 3D printers for polymer manufacturing and operates in areas such as consumer products, healthcare, aerospace, and the automotive industry. The firm’s clients include General Motors, Google, Tesla, Amazon, and Medtronic. It employs a total of 1980 workers globally, of which 537 are based in Israel.
Stratasys did not specify the exact number of job cuts which are estimated at around 300 employees globally, including 80 in Israel. The streamlining measure is expected to lead to about $40 million in annual cost savings beginning in the first quarter of 2025, the company said.
“Alongside the increased adoption and use of Stratasys solutions, macroeconomic challenges affecting the entire industry have led to a decline in demand, particularly for new capital investments,” Stratasys said in an e-mailed statement. “Accordingly, Stratasys is undertaking reorganization efforts and adjusting its cost structure to align with the current market conditions.”
The restructuring move was announced as part of the firm’s second-quarter company earnings. Stratasys said revenues in the April-to-June period declined to $138 million from $159.8 million during the same period last year. It reported a net loss of $25.7 million in the second quarter versus a loss of $38.6 million year-on-year. For the full year, Stratasys forecasts revenues of $570 million to $580 million, which is about $50 million lower than its previous forecast.
Over the past year, Stratasys has been engaged in several merger talks and agreements, including with US industrial 3D printing giant Desktop Metal and US rival 3D Systems, which did not come to fruition.
“Our efforts will enable our customers to more effectively address their biggest manufacturing challenges, which should lead to increased adoption of our additive technologies,” said Stratasys CEO Dr. Yoav Zeif. “This realignment is critical to ensure that we can achieve our objectives to deliver sustained profitability and cash flow, while remaining ready to capture opportunities when the spending cycle improves.”
