3D printing company Stratasys Ltd. announced this week it will lay off around 240 people, or 10% of its global workforce.
Stratasys, which is headquartered in Eden Prairie and Rehovot, Israel, said that the layoffs were in the works for some time, but happened sooner than expected because of the economic impacts of the Covid-19 pandemic. It expects most of the layoffs to happen during the summer, though some will continue into the fall.
The layoffs will be spread across the company evenly, a spokesperson said, which means its operations in Minnesota and Israel will be hit hardest. Stratasys doesn't expect to lose any capacity as a result of the layoffs.
“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,” said CEO Yoav Zeif. "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."
The layoffs are expected to reduce Stratasys' annual operating expenses by $30 million. The company's operating expenses were $325 million in 2019, and it hasn't operated with positive net income in years.
In response to the move, Stratasys stock rose nearly 10% on Tuesday, and the stock was upgraded to overweight by JP Morgan.
Stratasys had revenues of $636 million in 2019. It's Minnesota's 34th largest public company, according to Business Journal research.
