Stratasys to lay off 15% of workforce as part of $40M cost-cutting plan
Stratasys to lay off 15% of workforce as part of $40M cost-cutting plan
Around 300 employees are set to leave the Israeli 3D printer manufacturer.
Stratasys, a 3D printer manufacturer based in Rehovot, announced in its second-quarter earnings report that it plans to reduce its workforce by 15%. While the company did not specify the exact number of layoffs, estimates suggest that around 300 employees will be affected, including about 80 in Israel. Stratasys anticipates that these workforce reductions and business changes will result in $40 million in annual savings from the first quarter of 2025, along with annualized EBITDA margins of 8%. This reduction is part of a broader business reorganization following a revision of the company's revenue forecast.
In the most recent quarter, Stratasys reported revenues of $138 million, down from $159.8 million in the same quarter last year. For the full year, the company forecasts revenues of $570-580 million, which is approximately $50 million lower than its previous forecast. However, it expects a slight increase in third-quarter revenues compared to the second quarter.
Dr. Yoav Zeif, Stratasys’s Chief Executive Officer, stated, “For the Company to maintain its industry leadership, we continuously evaluate and assess our business model to ensure we are optimally aligned with evolving market conditions. We are confident that our efforts will enable our customers to more effectively address their biggest manufacturing challenges, which should lead to increased adoption of our additive technologies. 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, positioning Stratasys to deliver outsized shareholder value.”
