OAN’s James Meyers
11:46 AM – Monday, January 29, 2024
Roomba-maker iRobot has announced that the planned deal to be acquired by Amazon will not be completed, resulting in the company announcing they will be laying off 31% of its workforce.
In a press release, the two companies claimed the European Union was set on blocking the deal and that there was “no path to regulatory approval,” according to the Wall Street Journal.
The proposed acquisition by Amazon of iRobot “has no path to regulatory approval in the European Union,” preventing both companies from moving forward with the transaction − “a loss for consumers, competition, and innovation,” the joint statement reads.
The 31% or almost 350 employees being let go from iRobot also caused the company’s CEO, Colin Angle to announce he would be stepping down.
The announcement comes after Amazon agreed to buy iRobot in August 2022, for $1.7 billion.
“We’re disappointed that Amazon’s acquisition of iRobot could not proceed,” said David Zapolsky, Amazon SVP and General Counsel released in a statement. “We’re believers in the future of consumer robotics in the home and have always been fans of iRobot’s products, which delight consumers and solve problems in ways that improve their lives. Amazon and iRobot were excited to see what our teams could build together, and we’re deeply grateful to everyone who worked tirelessly to try and make this collaboration a reality.”
Additionally, Amazon will pay iRobot a $94 million termination fee for the failure of the deal.
“iRobot expects to record restructuring charges totaling between $12 million and $13 million, primarily for severance and related costs, over the first two quarters of 2024, with the majority of the restructuring charges anticipated in the first quarter of 2024.”
iRobot has announced that most employee layoff notifications will take place by March 30th.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts