Stratasys Ltd. – a global leader in additive manufacturing or 3D printing technology and the manufacturer of FDM®, PolyJet™, and stereolithography 3D printers announced that it is reducing its global workforce as part of a strategic plan to accelerate growth with a leaner operating model.
This resizing, advanced sooner due to the impact of COVID-19, will affect approximately 10% of employees, and is designed to reduce operating expenses as part of a cost realignment program to focus on profitable growth. The company expects the vast majority of the reduction to take place in the second quarter and to complete the reduction during the third quarter of this year.
Speaking about how the resizing is a part of the company’s strategizing efforts, Yoav Zeif, Chief Executive Officer at Stratasys said, “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.”
Expressing his appreciation to those who worked towards the growth of the company, Zeif stated, “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”.
The step taken by the company is not expected to affect the progress of the company as the company continues to focus on its forthcoming product launch plans, which remain a top priority as it leads the industry to new heights with its best-in-class additive manufacturing solutions.
Stratasys expects the resizing effort, in conjunction with other cost-mitigation measures, to 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 this year.