iRobot, the maker of consumer robots, is letting go of about 31 per cent of its employees, approximately 350 people. The company’s founder, Colin Angle, CEO, is also expected to resign.
This move comes after the termination of the 1.7 billion-dollar deal with Amazon due to regulatory issues, causing iRobot’s shares to decline by 10 per cent.
iRobot Corporation is an innovative American technology company specialising in the design and creation of consumer robots. Its diverse product lineup features an array of cutting-edge devices, including the renowned Roomba series of autonomous home vacuum cleaners, the Braava line of floor moppers, and various other autonomous cleaning devices.
The company’s goal is to better match its operations with its future plans as an independent entity, emphasising sustainability and profitability. Robot is reducing its workforce and expects to face charges of 12–13 million dollars for things like severance in the first two quarters of 2024.
The iRobot Board mentioned the difficulty of decisions that affect employees but highlighted 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 per cent drop in its full-year 2023 revenue to $891 million compared to the previous year.
Due to the terminated Amazon deal, iRobot will receive a 94 million dollar termination fee, using 35 million dollars to immediately repay a term loan. Despite disappointment in the company’s 2023 performance, there is a strong focus on future prospects.