California-based digital photo company Shutterfly plans to close its Shakopee manufacturing facility and lay off 246 employees within the next year.

According to an Aug. 10 notice sent to the Minnesota Department of Employment and Economic Development, the terminations will start on Oct. 9 and conclude at the end of June of 2024.

In a statement, Shutterfly said it made the decision to close the Minnesota facility as part of a strategic plan to consolidate production to larger manufacturing locations.

“This decision was carefully considered as part of our strategy to strengthen our overall business operations and consolidate production into our larger manufacturing hub locations,” the statement reads. “We fully recognize the impact this decision will have on our dedicated employees, their families and the Shakopee community. While it was a difficult choice, we remain committed to supporting our employees during this transition.”

Shutterfly is based in Redwood City, California, but has offices in Eden Prairie.

The company first broke ground on the Shakopee facility a decade ago and spent about $60 million in total to build it. At the time, Shutterfly said it could employ as many as 1,000 workers at plant, according to local news reports. In 2018, the city of Shakopee approved a nine-year tax abatement plan for the California company.