Shutterfly to close Shakopee facility, lay off around 250 employees

A picture products and service company has decided to close its facility in Shakopee, costing around 250 employees their jobs.

Shutterfly said in a notice to the Minnesota Department of Employment and Economic Development that it plans to permanently close its location on Deen Lakes Boulevard near the end of June 2024.

While the company will keep the facility open for another 10 months, the notice says Shutterfly plans a first wave of layoffs on Oct. 9 with additional waves of layoffs leading up to the facility’s closure.

In total, approximately 246 employees are expected to lose their jobs due to the company’s decision.

Shutterfly confirmed the decision to 5 EYEWITNESS NEWS, saying it “was carefully considered as part of our strategy to strengthen our overall business operations and consolidate production into our larger manufacturing hub locations.”

“We fully recognize the impact this decision will have on our dedicated employees, their families, and the Shakopee community,” a company spokesperson added. “While it was a difficult choice, we remain committed to supporting our employees during this transition. Over the next several months, we will work closely with all affected employees, providing support that includes outplacement services. We will also ensure that they have the opportunity to apply for open positions and receive relocation assistance, where applicable, to other Shutterfly manufacturing and production facilities.”

The news comes a little over four months after the company laid off nearly 100 other employees while shifting work from two units in the Shakopee facility to other locations.