Roomba maker iRobot has announced it will lay off 31% of employees after the Amazon deal fell through
iRobot said Monday that its planned deal to acquire Amazon will not go ahead, a development that prompted the Roomba floor vacuum maker to announce that it will now lay off 31% of its employees.
The two companies said in a statement that the European Union is preparing to block the deal, and that “there is no path to regulatory approval,” which was news that was… This was first reported earlier this month by The Wall Street Journal.
The breakup led to the resignation of iRobot Chairman and CEO Colin Angle.
The planned acquisition was first announced in August 2022, and would have valued Massachusetts-based iRobot at about $1.7 billion.
Instead, iRobot shares fell as much as 19% in Monday trading.
iRobot said Monday that it will now shift its focus away from “non-floor care” products such as air purifiers and lawn mowers.
In November, European Union regulators said they feared the deal with Amazon would restrict competition in the robot vacuum market because the e-commerce giant might prevent other companies from selling on its website. Magazine too mentioned Amazon missed the deadline to provide a response to these concerns.
“Mergers and acquisitions like this help companies like iRobot better compete in the global market, especially against companies and from countries that are not subject to the same regulatory requirements in fast-moving technology sectors like robotics,” an Amazon executive said. Monday statement.
“Inconsistent and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisitions as a path to success, and this hurts both consumers and competition — the very things regulators say they are trying to protect.”