Just after six months of laying off 20% of its workforce, MakerBot is doing it again. The company is cutting down another one-fifth of its payroll as it struggles to meet lofty ambitions and expectations set by its parent company Stratasys. The company is also reported to be vacating one of the two buildings it occupies in Industry City, a large-scale manufacturing complex in Brooklyn.
The popular 3D-printing company is expected to make changes to its leadership team to ‘have a focus on its people and the MakerBot 3D Ecosystem.’ The news was announced through the company’s blog post by CEO Jonathan Jaglom. He wrote, “For the last few quarters, we did not meet our ambitious goals. In order to lead our dynamic industry, we need to get back to our entrepreneurial spirit and address our fractured organizational structure.” He said in an interview with media, “We are facing tremendous challenges at MakerBot. Across the board throughout the industry we are seeing a very slow growth pace in the 3D printing space, and of course MakerBot is impacted by that as well.”
As a means of reshaping the company, they have brought two industry experts Kavita Vora, former HR director at HP as company’s Chief of People and Naday Goshen CEO of emoticon company SweetPacks to become the company’s new President, in hopes to refocus the company’s culture.
Apart from the changes in the workforce, MakerBot may see changes in the locations as well. All research and Development is being moved from Industry City to their corporate headquarters at MetroTech. The company’s factory will remain in Industry City. The company is also expected to hire non-contract manufacturer to make their 4th generation products to save on costs, and focus the factory team on the current generation of MakerBot 3D printers.
Jaglom said, “The fact that we were splintered across the organizations, caused for misalignment, miscommunication and more challenging environment for our staff to work in.” As the consumer 3D-printing market’s rise has slowed down, diving the staff into multiple locations was affecting MakerBot’s capability to work efficiently, said Jaglom.
From the consumers’ perspective the 3D printing industry is very much an upcoming one and the inherent turbulence has made MakerBot’s quick growth a rather bumpy one. It looks like the market is beginning to stabilize and without an industrial or commercial printing arm to depend on, it not surprising to know that MakerBot is having a bad time. Apart from all this, MakerBot is also dealing with a lawsuit that alleges the company knowingly sold faulty printing heads.