Austin-based 3D printing startup ICON Technologies Inc. is undergoing a significant restructuring, resulting in the layoff of 114 employees, according to a WARN letter filed with the Texas Workforce Commission. The company, which has raised over $450 million in funding, confirmed the news to TechCrunch, stating that it had made a "difficult decision to re-align" its team to focus on its highest priorities and continue investing in its best growth opportunities.

ICON Technologies, founded in late 2017, made headlines in 2018 with the launch of the first permitted 3D-printed home in the United States. The 350-square-foot house took approximately 48 hours to print at 25% speed. Since then, the company has delivered over two dozen 3D-printed homes and structures across the U.S. and Mexico, with more than half of those homes built for the homeless or those in chronic poverty.

The startup has received significant backing from investors, including Tiger Global Management, Norwest Venture Partners, 8VC, and others. Its last funding round in February 2022, a $185 million extension of a Series B round, valued the company at nearly $2 billion. Despite this substantial investment, ICON is now streamlining its operations to prioritize its most promising projects.

The exact number of employees ICON will retain after the layoffs is unknown, but the Austin Business Journal reported that the company had around 400 employees prior to the restructuring. This means the layoff of 114 people would represent more than 25% of its workforce. The layoffs are scheduled to take place on March 8, according to the WARN letter.

ICON has made significant strides in the mainstream housing market, breaking into the sector in early 2021 with the first 3D-printed homes for sale in the U.S. The company also partnered with Lennar, one of the nation's largest homebuilders, in October 2021. ICON's current priority 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.

The company's spokesperson emphasized that ICON's mission remains to develop intelligent machines to build humanity's future. Despite the restructuring, the startup will continue to design and build a selection of key projects across residential, hospitality, social/affordable, and Department of Defense sectors with a more streamlined team.

This news raises questions about the challenges facing 3D printing startups in the construction industry. Despite the promise of innovative technologies, companies like ICON must navigate the complexities of scaling their operations while maintaining profitability. As the industry continues to evolve, it will be interesting to see how ICON and its peers adapt to the changing landscape.