Stratasys Ltd, headquartered in Eden Prairie, Minnesota, USA, and Rehovot, Israel, has reported plans to reduce its global workforce as part of its strategic plan to accelerate growth with a leaner operating model.
The company states that this resizing, which it has advanced sooner than planned 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 programme to focus on profitable growth. Stratasys expects the majority of the reduction to take place in the second quarter and completeduring the third quarter of this year.
In conjunction with other cost-mitigation measures, the resizing effort expected to reduce annualised operating expenses by approximately $30 million. The company states that it will incur a charge of approximately $6 million in severance costs, primarily in the second quarter of this year.
“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,” commented Yoav Zeif, Chief Executive Officer of Stratasys. “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,” he continued. “This measure is not expected to affect the progress on our forthcoming product launch plans, which remain a top priority as we lead the industry to new heights with our best-in-class Additive Manufacturing solutions.”