iRobot cuts 105 jobs amid operational restructuring plan

In the United States, iRobot, the manufacturer known for its Roomba robotic vacuum cleaners, has announced significant workforce reductions as part of an extensive operational restructuring plan. Recently, the company revealed that it laid off 105 employees, which accounts for approximately 16% of its total workforce. This decision follows a previous round of layoffs earlier in the year, where approximately 350 jobs were eliminated, representing about 31% of the workforce at that time. These layoffs come on the heels of a failed acquisition attempt by Amazon, which had intended to purchase iRobot for $1.7 billion. The companies mutually terminated the agreement primarily due to concerns regarding regulatory approval in the European Union. Following the termination, iRobot received a compensation of $94 million from Amazon, but the loss of the acquisition deal led to financial uncertainties for the company. During an earnings call for Q3 2024, iRobot's CEO Gary Cohen addressed the devastating yet necessary job cuts, stating that these changes are aimed at creating a new operational model that allows the company to work more efficiently with partners and ultimately develop and introduce new products at reduced costs and with fewer resources. The restructuring is part of a broader strategy to adapt to changing market conditions and consumer demands, which have significantly impacted the company’s financial health. The ongoing adjustments at iRobot indicate a significant shift in the company’s approach to innovation and product development. By drastically reducing its workforce, the company hopes to streamline operations and enhance its ability to compete in the rapidly evolving robotics market. The management's focus is now on adapting to a changing landscape, albeit with a much smaller team, emphasizing that even with fewer employees, the company can significantly improve its product introduction rate while lowering costs.