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Shutterfly tanks 15% after layoff announcement, earnings miss

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Shares of Shutterfly shed 15 percent in after-hours trading Wednesday after the company announced a restructuring plan and reported quarterly results and guidance that missed expectations.

President and CEO Christopher North said the company saw revenue declines in many brands, including: Tiny Prints, Wedding Paper Divas, MyPublisher and BorrowLenses.

North said the plan would focus on reinvesting in the business to drive growth for the future. As part of the restructuring, Shutterfly will reduce its workforce by 13 percent, affecting 260 employees. Shutterfly said it would close its Santa Clara, California and New York locations.

For the fiscal fourth quarter, the Redwood City, California-based company posted earnings of $2.63 per share on revenue of $561 million. Wall Street had expected Shutterfly to report earnings per share of $2.84 on $584 million in revenue, according to Thomson Reuters consensus estimates.

For the fiscal first quarter, Shutterfly said it expects a loss per share between 95 cents and $1. That loss per share range is larger than the 84 cents that analysts had projected, according to Thomson Reuters. Shutterfly said it expected fiscal 2017 earnings per share between 45 cents and 80 cents, well below analyst expectations for $1.19, according to Thomson Reuters.

As of their Wednesday close, Shutterfly shares had rallied 23 percent in the past 12 months.