iRobot Slashes 10% of Workforce Amid Amazon Acquisition News
iRobot announces a restructuring plan that eliminates 140 jobs, cutting 10% of its global staff. The company insists the layoffs are completely separate from its recent Amazon acquisition announcement.
iRobot announces plans to cut 140 jobs, reducing its global workforce by roughly 10%. The company reveals this restructuring initiative inside its latest quarterly earnings report, aiming to save between $30 million and $40 million in 2023. This latest round of layoffs doubles the 70 job cuts the company made at the outset of the pandemic in April 2020.
The robotic vacuum maker states that the workforce reduction is entirely separate from the recent news of Amazon acquiring the company. iRobot emphasizes that Amazon plays no role in this decision and that both businesses continue to operate independently. However, the timing aligns closely with iRobot working to streamline its operations ahead of folding into Amazon's consumer offerings.
This restructuring effort focuses on shifting non-core engineering functions to lower-cost regions and relying more heavily on joint design manufacturing partners. iRobot faces significant sales declines across key markets, including a 39% drop in EMEA, a 29% decrease in the U.S., and an 18% decline in Japan compared to the previous year.