Jan. 29 (UPI) — Amazon announced that it was calling off plans to purchase the company iRobot on Monday.
David Zapolsky, Amazon’s senior vice president and general counsel blamed “undue disproportionate regulatory hurdles” in the breakup of the potential merger.
“Mergers and acquisitions like these help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries that aren’t subject to the same regulatory requirements in fast-moving technology segments like robotics,” Zapolsky said in a statement.
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable.”
After Amazon’s joint announcement, iRobot said it would lay off about 350 workers as part of a new restructuring plan. The company said its restructuring plan will cost up to $13 million, mostly in severance and related costs over the next two quarters.
“Though decisions that impact our people are difficult, we must move forward with a more sustainable business model and a renewed focus on profitability,” iRobot board chairman Andrew Miller said in a statement.
“We are confident that the actions we are announcing today will enable us to chart a new strategic path for sustainable value creation.”
Amazon announced in 2022 that it would acquire iRobot for $1.7 billion.
The domestic robot company introduced the Roomba robot vacuum in 2002 and similar products for the home. The company has claimed to have sold more than 50 million units globally.
“The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better.”
