Shares of iRobot Corp (NASDAQ: IRBT), creator of the world’s most renowned robot vacuum, slid significantly Wednesday due to disappointing financial results and workforce cuts.
The robotics company just reported revenue of US$193 million for this year’s third quarter. This number fell significantly below the expected sum of US$220 million for the three-month period. iRobot also just laid off another 105 workers, representing 16 per cent of its remaining staff.
These negative developments follow a series of other issues that have led to a continuous decline in iRobot’s stock price. It has plummeted by over 82 per cent since Jan. 1.
The Roomba mastermind’s proposed US$1.4-billion-dollar acquisition by Amazon.com Inc (NASDAQ: AMZN) fell through in January. This was significantly attributable to an inability to acquire regulatory approval in the European Union over concerns that the merged company would dominate the robot vacuum market.
iRobot has let just under 50 per cent of its employees go since the beginning of the year, particularly due to the failed Amazon deal. The tech developer’s Roomba device first entered the market in 2002. One of its newest and most expensive models, the Roomba Combo, vacuums and washes the floor simultaneously.
$IRBT iRobot laying off 16% of its workforce.
https://t.co/16vEptlCyt pic.twitter.com/sm9ugCTvIl— Brian Frank (@bfrankvalue) November 5, 2024
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iRobot is big on Star Wars
Star Wars Day, May 4th, has held special significance to the company for several years.
“One of the fun things about iRobot is you never know where you’ll find Star Wars stuff in the office!” founder Colin Angle said in 2022. “It literally could be anywhere. We look forward to Star Wars Day all year.”
During iRobot’s May 4th celebration this year, the company welcomed a new chief executive officer. Gary Cohen stepped in following Angle’s resignation. Notably, Cohen formerly served as CEO at the Timex Group — a world-renowned watchmaker.
This isn’t the only recent leadership change for the company. iRobot’s chief financial officer and chief human resources officer just stepped down. In August, Jeffrey Engel stepped in as the new President and Chief Operating Officer.
He is known for being a former executive director at Ford Motor Co. (NYSE: F) and has held leadership roles with investment banks and other organizations.
“I am honoured to take on the role of President and COO and look forward to working across the company to continue innovating, bringing new products to market and further establishing the strategic direction that will ensure iRobot is well positioned for the future,” Engel said at the time.
Employees celebrate Star Wars Day last year. Photo credit: iRobot
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