Stratasys Confirms Expected Layoffs of Around 15% of Workforce

It is hardly a secret that 2024 has been a challenging year for the 3D printing sector. In a sharp contrast to just a few years ago, we are seeing fewer and fewer mergers and acquisitions and those who have gone public have generally suffered. Now, Stratasys has announced layoffs for about 15% of its workforce.

The news was broken by the Times of Israel after a press release from the company on earning in Q2 2024. The newspaper reported that Stratasys, in an emailed statement, confirmed that “Alongside the increased adoption and use of Stratasys solutions, macroeconomic challenges affecting the entire industry have led to a decline in demand, particularly for new capital investments. Accordingly, Stratasys is undertaking reorganization efforts and adjusting its cost structure to align with the current market conditions.” The news aligns with lower than expected earnings compared to last year.

Photo Credits: Stratasys

Why Is Stratasys Turning to Layoffs?

As has been a wider pattern in 3D printing, the layoffs are a direct result of earnings, which have decreased since 2022. More specifically, in the company’s Second Quarter 2024 Financial Results, a revenue of $138 million was reported in comparison to $159.8 million in the second quarter of 2023. Furthermore, this has caused stock to plunge to a 52-week low at $6.30 due to these results.

In a press release discussing the financial results from 2024, Dr. Yoav Zeif, Stratasys’ 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 […] 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 […] We understand the importance of a disciplined approach to balancing investment in innovation with staying focused on delivering the most impactful additive manufacturing applications to our customers and value to shareholders.”

This is what has driven the decision for layoffs for 15% of staff, as Stratasys is working to streamline operations and enhance market strategy. This is a result of a comprehensive strategic review, with Stratasys working to restructure actions to further strengthen its position and lead to a more robust business model. Indeed, the ‘rightsizing’ of the workforce by 15% is expected to produce about $40 million in annual cost savings, beginning in the first quarter of 2025.

Stratasys has increasingly become known for its medical offerings, for example with the J5 3D printer (photo credits: Stratasys)

Still, it seems that there has been some good news as well. In the same press release, Dr. Zeif notes that the company has achieved strong consumables sales and strengthened its market position thanks to new products like the J5 Digital Anatomy printer. Furthermore, the company has decided to focus on its highest growth potential products, including materials and software solutions. We will see how the situation will evolve but in any case, you can learn more in Stratasys’ press release HERE.

What do you think of these layoffs from Stratasys? Do we think we’ll continue to see this trend in the 3D printing sector over 2024? Let us know in a comment below or on our LinkedIn, Facebook, and Twitter pages! Don’t forget to sign up for our free weekly newsletter here for the latest 3D printing news straight to your inbox! You can also find all our videos on our YouTube channel.