Stratasys Subsidiary MakerBot Slashes Jobs
Eden Prairie-based Stratasys Ltd. made big news in June 2013 when it announced its acquisition of Brooklyn-based MakerBot. The deal, initially valued at $403 million, was a move to combine two key players in the emerging 3D printing industry: Stratasys is a leader in commercial 3D printing and MakerBot focuses on desktop 3D printing.
But on Friday afternoon, tech website Motherboard reported that MakerBot—which operates as a separate subsidiary of Stratasys—had laid off 20 percent of its staff. Motherboard estimated the cuts to total approximately 100 employees at the company’s Brooklyn headquarters.
Several other technology and business web sites, including Fast Company, picked up the news. In response to inquiries from Twin Cities Business, a MakerBot representative emailed a link to a statement from the company.
According to the company’s statement posted on Friday: “Today, we at MakerBot are reorganizing our business in order to focus on what matters most to our customers. As part of this, we have implemented expense reductions, downsized our staff and closed our three MakerBot retail locations.”
The company’s statement did not specify the number of employees who were laid off. MakerBot’s three retail stores were located in New York, Boston and Greenwich, Connecticut.
“These organizational moves are part of the continued scaling of MakerBot,” said David Reis, CEO of Stratasys, in the company’s statement.
The MakerBot acquisition has been bumpy for Stratasys. The company took an impairment charge of $102 million in the fourth quarter of 2014 related to the ongoing integration of MakerBot. The company first disclosed the issue in early February and has drawn shareholder lawsuits in its wake.
Stratasys reported sales of $217 million for the fourth quarter of 2014, a leap of 40 percent compared to the company’s sales a year ago. The company reported that MakerBot accounted for $26.6 million, or about 12 percent, of the company’s fourth quarter sales.
For 2014, Stratasys reported revenue of $750.1 million, a big leap from the $215.2 million that the company reported two years earlier in 2012. But with the charge related to MakerBot for 2014, the company reported a net loss of $119.5 million.
Twin Cities Business took an in-depth look at the company last year.
Stratasys has dual headquarters locations in Eden Prairie and Rehovot, Israel. The company’s annual report in March noted: “We have more than 2,900 employees and hold more than 800 granted or pending patents internationally.”