Shutterfly is leaving Shakopee.
The digital photo company is closing its warehouse and laying off nearly 250 workers, according to a letter the company sent the Minnesota Department of Employment and Economic Development, made available Thursday afternoon.
The closure and mass layoffs follow plans Shutterfly announced at the beginning of the year to cut about 100 employees at the warehouse as a cost-saving measure.
Employee layoffs will begin in October, with the facility scheduled to close by June 2024.
"This decision was carefully considered as part of our strategy to strengthen our overall business operations and consolidate production into our larger manufacturing hub locations," the company said in a statement. "We fully recognize the impact this decision will have on our dedicated employees, their families and the Shakopee community. While it was a difficult choice, we remain committed to supporting our employees during this transition."
Shutterfly representatives said the company will provide outplacement services to employees, who will also have the opportunity to apply for open positions within the company and receive relocation assistance when applicable.
This spring, Shutterfly also announced it was closing its production facility in Durham, N.C.
Shutterfly — which allows people to make personalized cards, photo books and gifts from their own photos — became private in 2019 when private equity firm Apollo Global Management purchased it for $1.74 billion.