iRobot Corp
This deal would have allowed Amazon to invest in continued innovation by iRobot and support iRobot in lowering prices on product customers.
Amazon will pay iRobot a $94 million termination fee.
iRobot tapped Glen Weinstein, Executive Vice President and Chief Legal Officer, as interim CEO, and the Board has initiated a search process for a permanent CEO. Colin Angle has stepped down as Chairman of the Board and CEO. The Board has appointed Andrew Miller, lead independent director, as Chairman. Miller has served on the iRobot Board since 2016.
Angle will continue to serve on the iRobot Board until his current term expires in May 2024, and he has agreed to remain a senior advisor for up to 12 months.
iRobot also disclosed plans to implement an operational restructuring plan to position the company for stabilization while focusing on profitability and advancing key growth initiatives to extend its market share in the mid-tier and premium segments.
It looks to accomplish margin improvements and generate approximately $80 million-$100 million in savings on equivalent volumes via deals with joint design and contract manufacturing partners, leading to the reduction of close to 350 employees, or 31% of its workforce, as of December 30, 2023.
iRobot expects to record restructuring charges of $12 million - $13 million over the first two quarters of 2024, with most of the restructuring charges likely in the first quarter of 2024.
iRobot looks to report full-year 2023 revenue of $891 million, down by 25% year-on-year (versus consensus of $842.33 million), and a non-GAAP operating loss of approximately $(200) million.
Last week, reports indicated the European regulators recommended the EU dump the deal over antitrust grounds in the robotic vacuum cleaner category.
Since the companies announced the deal in August 4, 2022, IRBT's business has deteriorated for reasons, including the post-pandemic hangover.
Price Action: IRBT shares are trading lower by 16.66% at $14.16 premarket on the last check Monday.
