ICON Technologies Inc., which builds homes using 3D printing, is laying off 114 people, according to a WARN letter filed with the Texas Workforce Commission.
A spokesperson for the company confirmed the news to TechCrunch, providing a statement that ICON had “recently made a difficult decision to re-align” its team and team size “to focus on our highest priorities and continue to invest in our best growth opportunities.”
ICON was founded in late 2017 and launched during SXSW in March 2018 with the first permitted 3D-printed home in the U.S. That 350-square-foot house took about 48 hours (at 25% speed) to print.
Over the years, Austin-based ICON has raised over $450 million in funding from investors such as Tiger Global Management, Norwest Venture Partners, 8VC, and others. At the time of its last raise in February of 2022 – a $185 million extension of a Series B round — ICON’s valuation was said to be “approaching $2 billion.”
It is unknown just how many employees ICON will have after the layoffs take place, which according to the letter, will occur on March 8. The Austin Business Journal reported that ICON had about 400 employees “at last count,” so a layoff of 114 people would be more than 25% of its workforce. A spokesperson for the company said only that ICON had “less than 400 employees” prior to this workforce reduction.
At the time of its last raise, the startup said it had delivered more than two dozen 3D-printed homes and structures across the U.S. and Mexico. More than half of those homes were built for the homeless or those in chronic poverty. For example, in 2020, ICON delivered 3D-printed homes in Mexico with nonprofit partner New Story. It also completed a series of homes serving the chronically homeless in Austin, Texas, with nonprofit Mobile Loaves & Fishes.
The startup broke into the mainstream housing market in early 2021 with what it said were the first 3D-printed homes for sale in the U.S. for developer 3Strands in Austin, Texas.
Then, in October 2021, ICON announced a partnership with Lennar, one of the nation’s largest homebuilders and an investor in the startup through its venture arm, LENx.
An ICON spokesperson on Thursday told TechCrunch the company’s priority now is to accelerate the development of Phoenix, its line of multi-story 3D printers “and begin putting the robotic technology into the hands of builders.”
“While our mission remains to develop these intelligent machines to build humanity’s future, we will continue to design and build a selection of key projects across residential, hospitality, social/affordable and those within the Department of Defense with a more streamlined team,” the spokesperson added.
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