3D Printing

3D Systems Confirms Closure of Andover Facility & Layoffs

After internal reports that 3D Systems would be closing down its Andover, Massachusetts facility, The Boston Globe has come across a federal filing that the company made confirming the statements made by the anonymous Andover employee to 3D Printing Industry.

The filing, an October letter sent to state regulators in compliance with the Worker Adjustment and Retraining Notification (WARN) Act, confirms details that include the fact that the facility would be permanently closed by June 30; however, our source implied that they expect it to happen even sooner.  According to The Globe, the letter reads, “This closure is the result of a strategic decision to consolidate operations, among other things. 3D Systems Inc. will be helping Andover employees during this transition, including offering relocation options as available.”

3D systems metal 3D printed logo

The letter also states that between 80 and 85 people will be laid off, beginning by the end of February, as a result of the closure.  Timothy Miller, director of corporate communications and public relations for 3D Systems, told The Globe, “That decision is part of our ongoing effort to consolidate some of our manufacturing and R&D activities.” He also reported that the company will relocate many of its employees to other 3D Systems locations, a statement that corroborates our source’s information.  Our source also indicated that, while some individuals would be let go, they would be given bonuses to stay with the company through the closure of the plant.

In a previous article on the company, I wrote that there were rumors regarding a harsh dismissal of the company’s consumer product division, Cubify.  While I awaited confirmation from the company, I later updated the article with information from an anonymous commenter that those rumors were only partially true, that the whole division had not been let go and that they weren’t laid off in such a harsh manner.  Since then, another anonymous 3D Systems employee has contacted me to confirm that, no, the whole division was not laid off and that it was not the dramatic situation described to me by my original source.  I have reached out to 3D Systems for confirmation about all of these details.

This news comes as 3D Systems has put out its Third Quarter and Nine Months 2015 financial results, which saw revenue decline 9%, as compared to this time last year, and a $32.2 million loss by the company. Interim CEO Andrew Johnson, who took over after former CEO Avi Reichental stepped down, said in a statement, “We are disappointed with our overall results and the lower revenue from our 3D printing products and services, which we believe were negatively impacted by continued challenging market conditions that extended customers’ capital investment cycles and reduced demand across all geographies.” He continued, “As we navigate challenging market conditions, we are taking decisive steps to reduce our cost structure and better prioritize our resources around near-term opportunities while continuing investments in quality initiatives, partner-centric programs and new products.”

The company may be facing substantial difficulties, which must be felt even more profoundly by those being let go, but it can still turn things around, something that will likely not be felt by those same employees being let go.  Soon, I hope to put out another article regarding the company’s status as a follow-up to my previous post on the role that former CEO Reichental played at the company, as it rode and contributed to the dynamics the hype bubble associated with the industry.  That post can be found here.