iRobot lays off 10% workforce amid $1.7 bn Amazon acquisition
Global consumer robot company iRobot, acquired by Amazon for $1.7 billion last week, has laid off 10 per cent of its workforce -- nearly 140 workers.
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San Francisco, Aug 10 Global consumer robot company iRobot, acquired by Amazon for $1.7 billion last week, has laid off 10 per cent of its workforce -- nearly 140 workers.
The company said that to better align its cost structure with near-term revenue, it is in the process of initiating a "restructuring of its operations".
"The actions are expected to result in a net reduction of approximately 140 employees, which represents 10 per cent of the company's workforce as of July 2, 2022," it said in its quarterly earnings report.
The restructuring, said the company, is expected to deliver net savings in the range of approximately $5 million to $10 million in 2022 and approximately $30 million to $40 million in 2023.
This latest round is double the number iRobot laid off in April 2020 at the outset of the pandemic.
The layoff at iRobot came as Amazon announced to acquire iRobot for $1.7 billion in an all-cash deal.
iRobot introduced the first Roomba robot vacuum in 2002 and has sold millions of robots worldwide for cleaning, mapping and navigation.
On completion of the transaction, Colin Angle will remain as CEO of iRobot.
"Since we started iRobot, our team has been on a mission to create innovative, practical products that make customers' lives easier, leading to inventions like the Roomba and iRobot OS," said Angle, chairman and CEO.
"Amazon shares our passion for building thoughtful innovations that empower people to do more at home, and I cannot think of a better place for our team to continue our mission," he added.
