iRobot’s $1.4 Billion Deal with Amazon Falls Through, Leading to Job Cuts

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  • Amazon.com Inc. has abandoned its planned $1.4 billion acquisition of iRobot Corp. after facing opposition from European Union regulators.
  • iRobot CEO Colin Angle has stepped down as the company embarks on a restructuring plan resulting in about 350 job cuts, or 31% of the workforce.
  • iRobot’s shares tumbled 19% in New York to $13.80, their lowest level since 2009, while Amazon’s shares were up less than 1% at $160.07.

In a surprising turn of events, Amazon has announced that it is abandoning its $1.4 billion deal to acquire iRobot, the maker of the popular Roomba vacuum cleaner. The deal, which was originally announced in January, was set to be a major partnership between the two tech giants.

The news comes as a blow to iRobot, which has been struggling to compete in the increasingly competitive market for smart home devices. In response to the failed deal, iRobot has announced that it will be cutting jobs in an effort to streamline its operations and refocus its efforts on developing new products.

“We are disappointed that the deal with Amazon will not be moving forward, but we remain committed to our mission of creating innovative, smart home products that make people’s lives easier,” said iRobot CEO Colin Angle in a statement.

Amazon has not provided a specific reason for why it has decided to abandon the deal, but industry analysts speculate that it may be a result of the ongoing antitrust scrutiny that the company is facing from regulators.

The news of the failed deal and job cuts has sent shockwaves through the tech industry, with many questioning what the future holds for iRobot and its popular line of smart home devices. Only time will tell how the company will weather this setback and move forward in the increasingly competitive market.

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