Shutterfly shutting down Israel tech hub it bought in 2012

CTECH by Calcalist reports North American photo printing leader Shutterfly will shut down its Israel operations, laying off 80 employees. Once part of the acquisition of Photoccino, the Haifa location employed 150 people at its peak.

In May, 2012, Shutterfly acquired the Israeli photo software company Photoccino for undisclosed terms. Photoccino developed technologies for the ranking, analysis and organization of digital photos. The deal was part of the year-long acquisition spree Shutterfly CEO Jeff Housenbold embarked on in 2011-2012. The others included Tiny Prints and Wedding Paper Divas for $333 million, Kodak Gallery for $23.8 million and Penguin Digital, whose MoPho app became the basis for Shutterfly’s mobile app.

When asked for a comment, Shutterfly responded:

In order to streamline the way we work and accelerate the speed at which we deliver for Shutterfly’s customers, we are making changes to our technology teams that will result in the closing of our Haifa office. The consolidated web and app team will be based in the United States. 

This decision was not made lightly, and we’re grateful for the dedication of our Haifa team over the past 14 years. We are committed to supporting the team through this transition, in addition to providing the required hearing opportunities.