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iRobot<\/a>, maker of the popular Roomba robot vacuum, is laying off 10% of its staff, or about 140 employees. The layoffs are part of a restructuring that iRobot said will save the company up to $10 million in 2022 and between $30-$40 million in 2023.<\/p>\n iRobot announced the layoffs on August 5, 2022 in its Q2 earnings results<\/a>. This was the same day iRobot announced it was being acquired by Amazon for $1.7 billion<\/a>. However, iRobot said the two events are not related. iRobot told The Robot Report<\/em> Amazon was not involved in its decision to reduce its workforce as the two companies continue to operate independently.<\/p>\n To better align costs with near-term revenue, part of the restructuring includes shifting certain non-core engineering functions to lower-cost regions and increasing use of iRobot’s joint design manufacturing (JDM) partners. iRobot mentioned some other cost-reduction steps it will take, including the reduction of its global facility footprint.<\/p>\n “These actions help support the company’s near-term priorities to drive innovation by executing on its product roadmaps, optimize inventory levels across all major channels, expand DTC sales and position the business for profitable growth in 2023,” iRobot said in its earnings statement. “They also augment other cost-reduction actions that include recalibrating near-term promotional and advertising plans, carefully managing hiring activities, adjusting short-term incentive compensation to align with projected performance and reducing other discretionary spending.”<\/p>\n iRobot\u2019s second-quarter revenue dropped 30% in 2022 due to weak demand and cancellations from retailers in North America and Europe, Middle East and Africa. The company also warned of weaker growth going forward. iRobot blamed that on inflation and the impact of the war in Ukraine. The robot vacuum market has more competition now than ever before, so certainly increased competition is playing a role, too.<\/p>\n <\/p>\n <\/p>\n A post shared by Jeff Bezos (@jeffbezos)<\/a><\/p>\n<\/div>\n<\/blockquote>\n\n\n
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