khaskhabar.com : Tuesday, January 30, 2024 10:24 AM
San Francisco. Consumer robot maker iRobot has announced it is laying off about 350 employees, about 31 percent of its workforce, and its founder and CEO Colin Engle will also step down.
The layoffs come after the $1.7 billion Amazon-iRobot deal was mutually terminated due to regulatory hurdles. iRobot shares fell 10 percent after news of the deal closing.
As part of this workforce reduction, iRobot expects to record a restructuring charge between $12 million and $3 million primarily for severance and related costs in the first two quarters of 2024, with the majority of the restructuring charge occurring in 2024. Estimated in the first quarter.
We must rapidly align our operating model and cost structure to our future as a standalone company,” said Andrew Miller, Chairman of the Board of iRobot. While the decisions affecting our people are difficult, we must focus with renewed focus on more sustainable business models and profitability.
Glenn Weinstein, iRobot’s executive vice president and chief legal officer, has been appointed interim CEO, and Miller has been appointed chairman of the board. iRobot is projected to record revenues of $891 million in 2023, down 25 percent from the same period last year.
Under the terms of the merger agreement, Amazon will pay iRobot a $94 million termination fee.
Following payment of a financial advisory fee of approximately 20 percent of the termination fee, the Company will immediately apply the $35 million termination fee to repay the term loan, and the remaining termination fee will be set aside for future use. We are disappointed with the company’s 2023 performance – but our focus is now on the future, Miller said.
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