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January 29, 2024
June 14, 2024

iRobot Layoffs: What Happened & Why?

In January 2024, Amazon and iRobot, the maker of Roomba vacuum cleaners, mutually agreed to terminate their $1.7 billion deal due to regulatory hurdles. Consequently, iRobot will lay off 31% of its workforce, approximately 350 employees, and CEO Colin Angle will step down. In this article, we'll discuss what happened, why it happened, and the potential future impact of this decision.

Why did iRobot have layoffs?

The termination of the $1.7 billion deal between Amazon and iRobot was primarily due to regulatory hurdles, leaving both companies without a clear path to approval. This significant setback prompted iRobot to reduce its workforce by 31%, equivalent to about 350 employees.

Additionally, the company's founder and CEO, Colin Angle, announced his departure following these events. The layoffs and leadership adjustments reflect iRobot’s response to these challenges and their need to adapt to evolving circumstances.

Financial Impact and Future Directions

iRobot has decided to pause development on "non-floorcare" products, such as air purifiers and robotic lawn mowers, redirecting focus to its core floorcare products. This strategic pivot is aimed at strengthening the company's position in its primary market. While the full financial impact of these changes on iRobot’s future is complex, the focus on core products is intended to secure and enhance the company’s market viability.

Impact on Industry

The termination of the Amazon-iRobot deal and subsequent layoffs at iRobot may lead to challenges in the consumer industry for the company. To remain competitive, iRobot will need to adjust its plans, focusing on margin improvements. The layoff of 31% of iRobot's staff could impact the consumer industry through job losses and potentially affect the company's ability to develop and market new products.


The Amazon-iRobot deal termination led to regulatory hurdles, 31% workforce layoffs, and CEO Colin Angle's departure. Focusing on core floorcare products, iRobot faces challenges in the consumer industry, needing margin improvements to stay competitive. These layoffs may impact the broader market, affecting job losses and product development. Future implications could involve strategic shifts and potential partnerships to regain footing in the industry.