It’s official, Amazon will not buy iRobot (which is parting ways with 350 employees)

For many months, Amazon has been looking to acquire iRobot, which is one of the leaders in the robot vacuum cleaner market.

It was in the heart of summer 2022, Amazon announced its desire to acquire the American company iRobot, specializing in robot vacuum cleaners. A transaction then estimated at $1.7 billion, which was quickly the target of an investigation led by the European Commission. A few days ago, the takeover seemed in very bad shape, and its cancellation is now confirmed.

Amazon’s takeover of iRobot definitively canceled

Indeed, the two groups made the news official through official press releases. “ Amazon’s proposed acquisition of iRobot has no chance of being approved by European Union regulators », indicated Amazon and iRobot.

According to iRobot, this is a serious “ loss for consumers, competition and innovation “. Founded in 1990, the company iRobot saw its annual turnover exceed one billion dollars in 2018. Renowned today for its cleaning robots, iRobot was also at the origin of robots designed for military purposes in the 1990s. and 2000.

Layoffs in the process at iRobot

Alongside the press release confirming the end of negotiations with Amazon, iRobot also issued a second press release, evoking a vast restructuring plan.

“ iRobot’s immediate priority as part of its operational restructuring plan is to more closely align its cost structure with near-term revenue expectations and drive profitability, including through the following financial and strategic initiatives », Explains the group.

In fact, this results in a reduction in staff, with the dismissal of around 350 employees, or 31% of the forces present.

The company expects restructuring charges of around $12 million to $13 million, primarily for severance and related costs, during the first two quarters of 2024.

Source : Engadget