ICON Technologies Inc., which uses 3D printing to build homes, plans to lay off 114 people, according to a warning letter filed with the Texas Labor Commission.
A company spokesperson confirmed the news to TechCrunch, saying ICON “recently made the difficult decision to realign our team and team size in order to focus on our top priorities and continue to invest in our best growth opportunities.” issued a statement. ”
ICON was founded in late 2017 and announced the first permitted 3D printed home in the United States during SXSW in March 2018. The 350 square foot house took about 48 hours to print (at 25% speed).
Over the years, Austin-based ICON has raised more than $450 million in funding from investors including Tiger Global Management, Norwest Venture Partners and 8VC. At the time of its last raise in February 2022 (an extension of its $185 million Series B round), ICON's valuation was said to be “approaching $2 billion.”
The layoffs are scheduled to take place on March 8, according to the letter, but it is unclear how many employees ICON will have after the layoffs. The Austin Business Journal reported that ICON has about 400 employees “at last count” and 114 people will be laid off. More than 25% of the workforce will be employees. A company spokesperson would only say that ICON had “less than 400” employees before the layoffs.
At the time of its last funding round, the startup said it had delivered more than 20 3D printed homes and structures in the US and Mexico. More than half of those homes were built for people who are homeless or chronically poor. For example, in 2020 ICON worked with nonprofit partner New Story to deliver 3D printed homes in Mexico. It also worked with the nonprofit organization Mobile Loaves and Fishes to complete a series of housing units serving the chronically homeless in Austin, Texas.
The startup entered the mainstream housing market in early 2021, announcing its first 3D printed home for sale in the US for Austin, Texas developer 3Strands.
Then, in October 2021, ICON announced a partnership with Lennar, one of the country's largest homebuilders and an investor in startups through its venture arm LENx.
An ICON spokesperson told TechCrunch on Thursday that the company's current priorities are to accelerate development of Phoenix, its multi-story 3D printer product line, and “start to put robotics technology into the hands of builders.” He said it was true.
“Our mission to develop these intelligent machines to build humanity’s future remains, but with a more streamlined team we are working on housing, hospitality, social/affordable projects, and within the Department of Defense. “We continue to design and build major projects across the country,” the spokesperson added.
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