iRobot Announces Layoffs of 105 Employees Amid Restructuring Efforts

iRobot, the maker of the Roomba vacuum, has announced the layoff of 105 employees, representing roughly 16% of its workforce, as part of an operational restructuring plan. This marks the latest in a series of workforce reductions for iRobot.

Earlier this year, the company slashed around 350 jobs (about 31% of its employees) after a planned acquisition by Amazon fell through due to regulatory concerns in the European Union. iRobot received a $94 million termination fee from Amazon as part of the deal's termination.

During the company's Q3 2024 earnings call, CEO Gary Cohen explained that the latest cuts reflect a shift towards a leaner operating model, designed to enhance iRobot’s product development efficiency with fewer resources.

According to Cohen, the new model will enable iRobot to introduce more products while using less than half the internal resources and at a third of the previous cost.

These recent layoffs bring iRobot's total workforce reduction to approximately 50% since the start of 2024, marking a significant transformation in its operations as the company seeks to remain competitive and financially sustainable in the evolving tech landscape.