A vacuuming Roomba model robot is displayed at iRobot headquarters in Bedford, Massachusetts
Scott Eells | Bloomberg | Getty Images
The cuts will affect roughly 85 employees, iRobot said in its fourth-quarter earnings report. The company had 1,254 employees as of Dec. 31, 2022.
For the fourth quarter, the company posted $84.1 million in losses on $357.9 million in revenue. IRobot said it expects to see “muted” orders in the first quarter of 2023.
IRobot is cutting employees while it’s in the process of being acquired by Amazon. The e-commerce giant announced last August it would buy iRobot for $1.7 billion, but the deal is still the subject of a Federal Trade Commission antitrust review.
IRobot is joining a stream of tech companies that have announced layoffs in recent months as rising interest rates and slowing consumer demand have triggered fears of a recession and spurred companies to cut costs. Amazon laid off roughly 18,000 corporate staffers, while Meta, Google, Salesforce and others have announced significant job cuts.
The iRobot cuts follow layoffs of about 100 employees in August when the company cited it’s need to better align its cost structure with near-term revenue and cash flow, as well as to improve profitability.
The latest cuts are being made “in anticipation that market conditions will remain challenging into 2023,” the company said in the earnings release. It will take a $4 million impairment charge as a result of the layoffs.
IRobot shares were down slightly in extended trading on Monday.