SoftBank-Backed Katerra to Cut 200 Jobs, Close Arizona Factory
The construction startup funded by SoftBank is aiming to turn an operating profit by the end of next year.
Michael Marks speaks during the G2 and Beyond forum in Taipei on June 22, 2019.
Photographer: Sam Yeh/AFP via Getty Images
Katerra Inc., a modular construction startup, got an $865 million cash infusion from investors led by SoftBank Group Corp. last year. Now, the company is shutting down a factory in Phoenix and cutting 200 jobs.
The move will shift Katerra’s manufacturing away from Phoenix and into its highly automated and lower-cost factory in Tracy, California. The transition will help the company grow more quickly in the U.S. and overseas, said Katerra Chief Executive Officer Michael Marks. It will also put the startup on track to turn an operating profit by the end of next year, and to double revenue to about $4 billion, he added.