iRobot to fire 350 employees to focus on profitability and growth

iRobot, which is popular for robotics vacuum cleaning solutions, has announced a strategic organizational restructuring plan aimed at improving profitability and key growth. The company plans to stabilize its position in the current environment while extending market share in the mid-tier and premium segments. Following this, iRobot says it will have to terminate 350 employees, according to ET. This is around 31 percent of the total workforce.

The restructuring will incur estimated charges ranging between $12 million and $13 million, mainly for severance and other related costs. These charges are expected to be recorded over the first two quarters of 2024, with a major portion anticipated in the initial quarter. Andrew Miller, Chairman of the Board, expressed the necessity of these decisions for the company to adopt a more sustainable business model and focus on profitability, ensuring long-term value creation.

As part of the strategic shift, iRobot also announced leadership changes. Colin Angle, the former Chairman of the Board and CEO, has stepped down from his positions. Glen Weinstein, iRobot's Executive Vice President and Chief Legal Officer, has been appointed as the Interim CEO, while Andrew Miller, the lead independent director, resumes the role of Chairman of the Board. Angle will continue to serve on the iRobot Board until May 2024. He has also agreed to stay on as a senior advisor for up to 12 months, as per the report.

It is being said that iRobot was slated to be acquired by Amazon, with an announcement made in 2022. However, both companies mutually agreed to terminate the acquisition. The current restructuring and leadership changes suggest that iRobot is now taking big steps to sustain in the market. While decisions impacting the workforce are acknowledged as difficult, the company remains optimistic that these actions will lead to a better future.

It seems that the layoff season is back because many major tech companies are firing employees in big numbers. Microsoft recently announced a fresh round of layoffs after eliminating thousands of employees last year. The company sacked people who work at Activision Blizzard and Xbox this week. While Microsoft has cut jobs in Xbox and Blizzard gaming divisions, cutting roughly 8 percent of the overall Microsoft Gaming division that currently has around 22,000 employees. Google also reportedly eliminated around 1,000 employees.