3D Systems to close facility following disappointing year
3D Systems has announced that it will be closing its facilities in Andover, Massachusetts, USA.
This follows a difficult year for the company, having battled a $11 million (£7.3 million) arbitration fee lawsuit from Print3D and watched its shares fall from more than $96 (£63) to $9 (£5.9) since January 2014. In addition to this, its chief executive and president Avi Rechental stepped down from his post earlier this year.
This closure is expected to lay off 80 – 85 employees, which include both engineering and software personnel. Phased redundancies are expected to begin by the end of February 2016, with the facility closing its doors for good by June 30th. According to a letter sent from 3D Systems to state regulators, the 'closure is the result of a strategic decision to consolidate operations'. The 3D print manufacturer has stated that it 'will be helping Andover employees during this transition, including offering relocation options as available'.
"We are disappointed with our overall results and the lower revenue from our 3D printing products and services, which we believe were negatively impacted by continued challenging market conditions that extended customers' capital investment cycles and reduced demand across all geographies," comments Andrew Johnson, the company's interim chief executive.
"As we navigate challenging market conditions, we are taking decisive steps to reduce our cost structure and better prioritise our resources around near-term opportunities while continuing investments in quality initiatives, partner-centric programs and new products.”