IRobot To Lay Off 350 Employees After Amazon Terminates $1.7 Bn Acquisition Deal

Consumer robot maker iRobot, on Tuesday, said that it has laid off nearly 350 employees, which is 31 per cent of its total workforce, according to a media report.

The company’s Founder and CEO Colin Angle is also expected to step down, the report said additionally.

The layoffs came following the mutual termination of the Amazon-iRobot deal which was of USD 1.7 billion approximately. This business was wrapped over regulatory hurdles which also led to the decline of iRobot shares which fell by 10 per cent, as per reports.

As part of this downsizing, iRobot is expecting to incur restructuring charges between USD 12 million and USD 13 million. This would mainly cover the severance and related costs, over the first two quarters of 2024.

Meanwhile, Amazon has agreed to pay iRobot a termination fee of USD 94 million as per the terms of the merger agreement.