REDWOOD CITY – Shutterfly said it will cut 260 employees or 13% of its workforce after announcing fourth quarter results. As a result, the company plans to close its offices in Santa Clara and New York City.
Shutterfly reported revenues of $561.2 million in the fourth quarter, a 2% increase from last year. Revenues for all of 2016 were $1.13 billion, a 7% increase. Net income was $91 million in the fourth quarter and $15.9 million for all of 2016, compared to a loss of $0.8 million in 2015.
The company said orders totaled 10.9 million in the fourth quarter, an increase of 6%. Average order was $47.98, down 2% year-over-year.
“We’re proud of our 2016 delivery against key initiatives, particularly Shutterfly Business Solutions, mobile, and product range expansion, as well as our continued progress on Operating Income, which more than doubled year-over-year,” said Christopher North, President and Chief Executive Officer of Shutterfly. “At the same time, Consumer growth came towards the low end of our guidance, and Adjusted EBITDA slightly below guidance, as Shutterfly-brand growth was offset by revenue declines in the Tiny Prints, Wedding Paper Divas, MyPublisher, and BorrowLenses brands.”
“To drive sustainable growth and long-term value creation, we’re announcing plans today to significantly simplify our Consumer business in 2017 as the first step in our longer-term strategy,” added North.
Shutterfly, Inc. is a leading online retailer of high-quality personalized products and services.
The company announced the following as part of its restructuring.
- Current Tiny Prints, Wedding Paper Divas, and MyPublisher customers will migrate to Shutterfly.com and the legacy websites will shut down.
- Three very small businesses, TripPix and FavePix, as well as the Shutterfly Pro Gallery service will be shut down.
- Santa Clara-based teams will be consolidated into Redwood City corporate headquarters. The Santa Clara office and both New York locations will be closed.
- Headcount will be reduced by approximately 13% or 260 employees.