Amazon and iRobot mutually decided to cancel their planned $1.7 billion acquisition deal due to regulatory hurdles, as reported by CNN.
iRobot's shares experienced a decline of around 9% following the announcement, while Amazon agreed to pay a cancellation fee of $94 million to the company as per their prior agreement. I Photo: iRobot Faceboo
Following the cancellation, iRobot announced a significant restructuring plan, including layoffs affecting 31% of its workforce and the departure of CEO Colin Angle, who will be replaced by Glen Weinstein as interim CEO.
iRobot's decision to lay off approximately 350 employees aims to achieve cost savings of up to $150 million.
The company's shares experienced a decline of around 9% following the announcement, while Amazon agreed to pay a cancellation fee of $94 million to iRobot as per their prior agreement. The two companies will provide further details on iRobot's future business plans during its fourth-quarter earnings call in February.