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iRobot announced a 10% staff cut the same day the Amazon news fell – londonbusinessblog.com

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Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

You would be forgiven for missing this news. I’m completely obsessed with not seeing it myself amid the buzz of last week’s Amazon acquisition news on Friday (knowing nods to Robot Report to point out). Later that day, in his quarterly results reportiRobot announced plans to cut 140 jobs – a figure equivalent to about 10% of its global workforce.

Here is the full note of the submission:

To better align its cost structure with near-term revenues, iRobot is in the process of initiating a restructuring of its operations, which is expected to deliver net savings of approximately $5 million to $10 million by 2022 and approximately $30 million to $40 million by 2023. As part of the restructuring, the company is accelerating actions to relocate certain non-core functions to lower-cost regions and increasingly leverage its joint design manufacturing (JDM) partners; better alignment of global and regional commercial and marketing resources to support go-to-market plans, while driving efficiencies and achieving economies of scale; realigning other areas of operations to best support the company’s current needs; and reducing the global footprint of facilities. The actions are expected to result in a net reduction of approximately 140 employees, equivalent to 10% of the company’s workforce as of July 2, 2022.

This latest round is double the number the company laid off at the start of the pandemic and dropped 70 employees in April 2020. At the time, the company announced the delay of its long-awaited lawn-mowing robot Terra – a product yet to be released. Although CEO Colin Angle strongly suggested to me that the product would arrive soon, as the company wants to provide meaningful product diversification beyond Roomba.

In a statement to londonbusinessblog.com, the company was quick to point out that the layoffs/restructurings were not a direct result of the recent Amazon news, noting, “The reduction in power is completely unrelated to Friday’s Amazon announcement. Amazon was not involved in iRobot’s decision to reduce its workforce, and the two companies will continue to operate independently.”

At the very least, though, it seems likely that the company is working to get its ducks lined up before plans to integrate into Amazon’s consumer offerings. In the second quarter, the company faced 39% EMEA, 29% in the US and 18% in Japan, compared to the same time last year, when Roomba sales received a nice boost as consumers spent more time at home. In the earnings report, iRobot explains that the cuts will help the company “execute its product roadmaps, optimize inventory levels across all major channels, expand DTC sales and position the company for profitable growth in 2023.” “

The company is certainly not the only one to deal with layoffs this year. In fact, they are quickly becoming the rule rather than the exception amid severe economic headwinds. Certainly being acquired by a giant like Amazon is a quick way to ensure that your company suddenly has serious financial power behind it. As we get closer to the expected closing of the acquisition, we should have a more complete picture of exactly what the brand will look like under that corporate umbrella. One of the open questions is how much Amazon plans to invest in existing plans to grow iRobot’s portfolio.

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