JANUARY 21, 2024 — 31% REDUCTION IN FORCE
iRobot has announced plans to lay off 31% of its workforce, approximately 350 employees after Amazon terminates an acquisition of iRobot due to potential regulatory issues.
iRobot Corporation, a leader in consumer robots, announced that it will implement an operational restructuring plan designed to position the Company for stabilization in the current environment while focusing on profitability and advancing key growth initiatives to extend its market share in the mid-tier and premium segments. This plan was approved following iRobot's and Amazon's mutual decision to terminate their previously announced merger agreement.
iRobot's immediate priority in undertaking the 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:
Achieving margin improvements and generating approximately $80-$100 million in savings on equivalent volumes through the execution of agreements with joint design and contract manufacturing partners on more attractive terms that provide significant reductions in the cost of goods sold;
Reducing R&D expense by approximately $20 million year-over-year through increased offshoring of non-core engineering functions to lower-cost regions;
Centralizing global marketing activities and consolidating agency expenditures to reduce sales and marketing expenses by approximately $30 million year-over-year while seeking efficiencies in demand generation activities to drive sales more cost effectively;
Rightsizing the Company's global real estate footprint through additional subleasing at its corporate headquarters and the elimination of offices and facilities in smaller, underperforming geographies; and
Focusing iRobot's product roadmap on core value drivers and pausing all work related to non-floorcare innovations, including air purification, robotic lawn mowing, and education.
These actions will also result in a reduction of approximately 350 employees, which represents 31 percent of the Company's workforce as of December 30, 2023, with the majority of notifications taking place by March 30, 2024.
Jeff Engel, a highly regarded turnaround expert, has been appointed Chief Restructuring Officer to oversee these initiatives and lead the implementation of the operational restructuring plan and will report directly to the Board and Mr. Weinstein.
The Company will continue executing key strategic activities to support iRobot's return to profitability, including increasing its brand recognition, driving product innovation, and redesigning its go-to-market strategy. Enhancements to the Company's go-to-market playbook will focus the business on iRobot's most profitable customers, geographies, and channels, including its growing direct-to-consumer channel while rebalancing the Company's spending mix between price, promotion, and demand generation to optimize returns.
FEBRUARY 15, 2023 — 7% OF WORKFORCE
In another round of layoffs, the company has announced a 7% reduction in force affecting approximately 85 employees.
“As a follow-on action to the company's August 2022 restructuring of operations and in anticipation that market conditions will remain challenging into 2023, iRobot has initiated a new restructuring program that is expected to deliver net annualized savings of approximately $14 million. As part of this restructuring, the company plans to reduce its workforce by approximately 7%, or approximately 85 employees, primarily by streamlining certain functions across the company. In addition to the reduction in force, iRobot's 2023 operating plan incorporates scaled-back working media and other demand-generation activities, limited investment in non-robotic product categories, and minimal new hiring plans in 2023.”
NOVEMBER 11, 2022 — iROBOT 100 LAYOFFS
iRobot has embarked on a cost-cutting initiative with plans to reduce its office space by resizing its 270,000-square-foot global headquarters in Bedford, Massachusetts, by the end of 2022.
The company has also terminated 100 employees and the Amazon acquisition is still pending.
AUGUST 10, 2022 — Original Post…
Bedford, Massachusetts-based iRobot Corporation, a technology company that designs and builds consumer robots such as their iconic Roomba, has announced a reduction in force prior to being acquired by Seattle, Washington-based Amazon for $1.7 billion.
In a Security Exchange Commission filing, the company announced its plan to reduce costs by relocating certain non-core engineering functions to lower-cost regions and implementing a 10% reduction in the company's headcount.
The reduction in force will impact approximately 140 employees.
A company spokesperson stressed that the reduction in force is "completely separate" from Amazon's announcement.
Additionally, an Amazon spokesperson added that “We have no plans to operate iRobot differently than how they operate today in regards to assortment. We will continue to supply other retailers and vendors with iRobot products, and continue to sell other products on Amazon.com.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?