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.