Roomba-maker iRobot axes 16% staff in yet another layoff round
What's the story
iRobot, the company behind the popular Roomba vacuum cleaners, has announced a major cut in its workforce. The firm is laying off 105 employees, which is nearly 16% of its total staff. The decision was revealed in a recent filing with the US Securities and Exchange Commission (SEC), and comes as part of an "operational restructuring plan."
Prior cuts
Previous layoffs and failed Amazon acquisition
Notably, this isn't the first instance of layoff at iRobot this year. Earlier, the company had cut around 350 jobs, roughly 31% of its workforce. The decision came after a failed acquisition attempt by Amazon. The proposed $1.7 billion deal was mutually terminated over expected regulatory approval issues in the European Union (EU).
CEO's statement
iRobot's CEO addresses layoffs during earnings call
iRobot's CEO Gary Cohen spoke about the recent layoffs during the company's Q3 2024 earnings call. He noted that while these decisions were difficult, they were essential for changing how the company works with its partners. Cohen said, "Our new operating model is able to deliver a significant increase in new product introductions with less than half the internal resources and approximately one-third the cost."