iRobot faces turmoil and launches eight new vacuum models

In the United States, robotics firm iRobot, known for its innovative robotic vacuum cleaners, has faced significant challenges after a failed acquisition attempt by Amazon in January 2024. This failure resulted in a drastic layoff of over 30 percent of its workforce and the resignation of co-founder Colin Angle as CEO. In response to the changing market and increasing competition from lower-priced brands, iRobot has significantly curtailed its operations, focusing solely on their core cleaning products. The decision also led to the discontinuation of air purifiers, lawn mowing, and education initiatives. As part of this strategic pivot, iRobot has cut its workforce by 50 percent and restructured its business model to reduce costs across sales, marketing, product research, and manufacturing. In keeping with this refocusing, the company has recently announced eight new vacuum models, marking what it terms the largest product launch in its 20-year history. These new products come equipped with advanced navigation features like lidar, effectively positioning them against competitors, such as Ecovacs and Roborock, who have long been capturing market share with lower-priced alternatives. The updated Roomba models will feature improved designs and new functionalities, including dual scrubbing pads for mopping and carpet detection, intended to offer a more user-friendly experience. With streamlined naming conventions, consumers can easily identify product specifications and functionalities without confusion. Prices for these new models have been set between $300 and $1,000, aligning more closely with competitor pricing strategies. The new offerings are available for preorder starting March 18, 2025, in the U.S. and select European markets. Despite these positive updates, the statement by iRobot regarding "substantial doubt" about the company's ability to continue as a "going concern" within the next year reflects the serious financial and operational challenges the firm is grappling with. Investors responded to this news by driving the company's stock price down nearly 40 percent. The resulting market reaction highlights the fragile state of consumer robotics, where innovation alone may not be sufficient to secure long-term viability in a rapidly evolving industry.