Shutterfly

Shutterfly, a California-based online photo printing and personalized goods company, is closing its manufacturing plant in Shakopee, Minnesota, resulting in the layoff of 246 employees. The closure, part of a strategy to consolidate operations into larger hubs, will be phased starting in October 2023, with the facility permanently shutting in June 2024. The company, which has operated the plant for nearly a decade, acknowledged the impact on workers and the local community and stated it would assist affected employees with job placement, internal transfers, or relocation support. This move reflects a restructuring effort within the competitive e-commerce and photo services industry.

Personalized photo products leader Shutterfly is laying off 360 employees, as confirmed by an internal company email. This latest round of staff reductions, effective by the end of March, follows a previous cut of about 800 employees last year. The layoffs are part of the company's ongoing struggles to stabilize after acquiring Lifetouch in 2018 and going private in 2020, compounded by reported losses of $35-$45 million in Q3 last year. CEO Hilary Schneider cited "choppy times" ahead, attributing the cuts to lackluster consumer spending, rising costs, and lower margins, despite post-pandemic growth plans. The layoffs include 97 positions at its Shakopee, Minnesota warehouse, where photo book production is being transferred to other facilities. This move reflects broader tech industry trends, as companies adjust to economic pressures.

In late January 2021, Shutterfly announced a significant staff reduction affecting nearly 800 employees. The layoffs primarily impacted the Lifetouch National School Studios division, with 700 positions cut in the U.S. and 30 in Canada, while the core Shutterfly business eliminated 90 roles. The company cited declining sales and the ongoing impact of the COVID-19 pandemic as key reasons, noting that the health crisis particularly affected the Lifetouch studio and school photography business. This restructuring, which also consolidated operational territories, followed Shutterfly's acquisition of Lifetouch in 2018 and its subsequent transition to private ownership under Apollo Global Management.