iRobot cuts 16% of workforce in latest layoffs

• iRobot lays off 105 employees, marking a 16% reduction in its workforce amid restructuring.
• The layoffs follow a terminated Amazon acquisition, with iRobot shifting focus to more efficient product development.

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What happened

In a significant restructuring, iRobot, maker of the popular Roomba vacuum, has announced another round of layoffs, cutting 105 jobs—around 16% of its workforce—according to an SEC filing. This follows an earlier reduction of about 350 jobs after a planned $1.7 billion Amazon acquisition was canceled. The deal failed due to anticipated regulatory hurdles in the EU, though iRobot received a $94 million termination fee. During the company’s Q3 2024 earnings call, CEO Gary Cohen acknowledged the challenges but explained that the layoffs are part of a new operational model aimed at increasing product introductions with fewer resources, cutting development costs by about two-thirds. Cohen said the restructuring will improve collaboration with partners and speed up iRobot’s innovation. Since early 2024, iRobot has reduced its global workforce by about 50%, shifting to a leaner, more efficient strategy.

Also read: Roomba abandoned by Amazon, will their robot vacuum live long?

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Why it’s important

This news shows a major shift in iRobot’s strategy, reflecting broader trends in tech and robotics. The layoffs, affecting 16% of iRobot’s workforce, are part of a restructuring plan to make the company more efficient and lower costs. This is not the first time iRobot has made cuts; earlier this year, the company reduced its workforce by 31% after the collapse of its $1.7 billion Amazon acquisition. The failed deal highlights the challenges companies face in navigating increasing regulatory scrutiny, especially in the EU, where competition laws have become stricter.

For consumers and investors, this reshaping of iRobot raises questions about its future product innovations and market position. While the company aims to streamline operations and launch new products at a lower cost, the large workforce cuts may signal slower growth or a shift in priorities. This story reflects a wider trend in tech where companies like Amazon and Google are under pressure to balance innovation with cost-cutting, often resulting in job cuts. For tech-curious readers, this shows how even industry giants must adapt to market realities and changing regulations.