Amazon has backed out of the $1.4 billion acquisition of iRobot, leading to significant repercussions for the vacuum maker.
In response, iRobot has announced a substantial 31% reduction in its workforce.
Simultaneously, iRobot’s CEO is stepping down from their position.
Despite the canceled acquisition, Amazon is providing iRobot with a $94 million termination fee.
iRobot is embarking on a comprehensive restructuring to enhance profitability and market share.
The company aims to achieve savings in the range of $80-$100 million through improved manufacturing terms.
Cost-cutting measures include a $20 million reduction in research and development costs through offshoring.
iRobot plans to trim sales and marketing expenses by $30 million and centralize global marketing efforts.
As part of the restructuring, non-floorcare innovations are temporarily paused.
The company anticipates charges of $12-$13 million related to the 31% workforce reduction.
