3D printer manufacturer Stratasys has announced that it will be reducing its global workforce by 10% as part of its plan to operate on a “leaner” business model. Spurred on by the financial implications of the pandemic, the resizing aims to reduce operating costs and drive the company on a profitable growth trajectory.
Yoav Zeif, CEO of Stratasys, stated: “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.”
A profitable future
The majority of the redundancies will take place in the second quarter of this year but the company expects to complete the reduction at some point in quarter three. While Stratasys will have to pay out about $6M in severance packages, the move, along with other cost-mitigation policies, is expected to save the company approximately $30M in operating expenses annually.
Zeif concludes: “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.”
According to Stratsys’ Q1 2020 financial results, the company managed to bring in total revenue of $132.9M, a whole 14.4% decline when compared to this time last year ($155.3M). As expected, the company has attributed this to the COVID-19 pandemic but states it is “well-prepared to manage the downturn with a strong balance sheet”. Despite printer sales being down across the board, Stratasys also released its J55 PolyJet 3D printer earlier this year in April. The machine has full-color capabilities and a build volume of 1,340 inches³.
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Featured image shows part 3D printed on the J55. Photo via Stratasys.