Stratasys is Downsizing its Workforce by 10%
3 June, 2020
The vast majority of the reduction will take place this month. Stratasys is planning to complete the process during the second quarter of 2020
The US-Israel based Stratasys Ltd. announced that it is reducing its global workforce as part of a strategic plan to accelerate growth. This resizing was expected according to the company’s long term strategy, but advanced sooner due to the impact of COVID-19. It will affect approximately 10% of its 2,300 employees. The vast majority of the reduction will take place this month. Stratasys plans to complete the reduction during the third quarter of 2020.
“This reduction in force is a difficult but essential step in our ongoing strategic process,” said Yoav Zeif (photo above), Chief Executive Officer of Stratasys. “This measure is not expected to affect the progress on our forthcoming product launch plans.” The move will reduce annualized operating expenses by approximately $30 million. The company will incur a charge of approximately $6 million in severance costs, primarily in the second quarter of 2020.
Stratasys is a global provider of industrial additive manufacturing (3D printing) solutions that are used to create prototypes, manufacturing tools, and production parts for industries, including aerospace, automotive, healthcare, consumer products and education. The company was heavily impacted by the COVID-19 epidemic. Revenue for the first quarter of 2020 was $132.9 million, compared to $155.3 million for the same period last year. The 14.4% reduction was driven primarily by the adverse impact of COVID-19 on the company’s customers.
Lately, in mid May, Zeif said the company had secured resources to contain the crisis: “We have over $325 million in cash and equivalents and no debt. It’s clear that this crisis has helped generate significant awareness that 3D printing is becoming essential for accelerating design, speeding up time to market and creating more resilient supply chains.”