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iRobot eliminates employment after $1.7 billion Amazon deal falls through due to regulatory concerns.

iRobot eliminates employment after $1.7 billion Amazon deal falls through due to regulatory concerns.

iRobot, the American technology company that creates consumer robots, is laying off approximately 31% of its employees, which is around 350 people. Colin Angle, the company’s founder and CEO, is also expected to resign. This decision was made after the termination of a 1.7 billion-dollar deal with Amazon due to regulatory issues. This caused iRobot’s shares to decline by 10%.

The company’s product lineup includes a variety of innovative devices such as the famous Roomba series of autonomous home vacuum cleaners, the Braava line of floor moppers, and other autonomous cleaning devices. iRobot’s goal is to align its operations with its future plans as an independent entity, emphasizing sustainability and profitability. The company expects to incur charges of 12-13 million dollars for things like severance in the first two quarters of 2024.

The iRobot Board acknowledged the difficulty of decisions that affect employees but emphasized the importance of moving forward with a more viable business model. Glen Weinstein is now serving as the interim CEO, along with Andrew Miller, chairman, iRobot. The company predicts a 25% drop in its full-year 2023 revenue to $891 million compared to the previous year.

Despite the terminated Amazon deal, iRobot will receive a 94 million dollar termination fee, using 35 million dollars to immediately repay a term loan. Although there is disappointment in the company’s 2023 performance, there is a strong focus on future prospects.

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