The failed acquisition has led to significant changes in iRobot's leadership, with CEO and Chairman Colin Angle stepping down and Glen Weinstein, the company's EVP and chief legal officer, being appointed as interim CEO. iRobot plans to save between $80 million and $100 million through renegotiated agreements with manufacturing partners, increased offshoring, and consolidation of its sales and marketing spending. The company also plans to reduce its corporate real estate footprint and pause all work related to "non-floorcare innovations". The restructuring is expected to cost between $12 million and $13 million, primarily for severance and expenses related to the layoffs.
Key takeaways:
- Amazon has terminated its bid to acquire iRobot due to regulatory issues in the European Union.
- iRobot will receive a $94 million termination fee from Amazon, but will also undergo an operational restructuring plan, which includes laying off about 31% of its workforce by late March.
- iRobot's chairman and CEO, Colin Angle, has stepped down and Glen Weinstein, iRobot’s EVP and chief legal officer, has been appointed interim CEO.
- iRobot plans to save between $80 million to $100 million through renewed agreements with manufacturing partners, increased offshoring, and consolidating its sales and marketing spending.