Updated: This article was updated to add the statement from Shutterfly below:
An all-hands phone conference Thursday, Jan. 21, with Shutterfly CEO Hilary Schneider brought the news of a nearly 800 person staff reduction. According to reports from people on the call, the company’s Lifetouch National School Studios business bore the brunt of the reduction, with 700 positions eliminated in the United States and 30 positions in Canada, while Shutterfly itself shed 90 staff positions. The number of territories was condensed in half from 180. Declining sales were mentioned as the reason for the staff reduction, according to sources.
Shutterfly provided the following statement:
Last week, Shutterfly, Inc. announced a series of changes enabling us to better match our organizational structure to our strategy. These changes include both a reorganization of certain teams as well as a reduction in staff across divisions and levels.
Similar to other businesses, COVID-19 has had an impact on the Lifetouch business. As a result, we have adapted our operations and continue making investments to ensure that we remain the market leader in Host and Studio-based photography and are prepared to support our hosts and customers as the impact of COVID de-escalates. In the meantime, we remain fully committed and ready to serve our Studios, Schools and Preschools customers in all of our markets.
Since the acquisition of Lifetouch by Shutterfly in 2018 and subsequent taking Shutterfly private by Apollo Global Management, the Lifetouch business has gone through considerable management changes and recent facility closures, including Maryland, Cheseapeake, Chattanooga, and Ohio.