iRobot, the company behind Roomba robot vacuums, has finalized its plans to downsize its current workforce.
In line with the recent announcement about layoffs, the tech firm is expected to ax around 7% or roughly 85 employees, as per the company's fourth-quarter earnings report.
iRobot is Downsizing its Employees
(Photo : Justin Sullivan/Getty Images)
LARKSPUR, CALIFORNIA - AUGUST 05: Roomba robot vacuums made by iRobot are displayed on a shelf at a Bed Bath and Beyond store on August 05, 2022 in Larkspur, California. Amazon announced plans to purchase iRobot, maker of the popular robotic vacuum Roomba, for an estimated $1.7 billion.
According to a report by CNBC on Monday, Feb. 13, iRobot is the latest firm to lay off some of its workers. Tech layoffs are becoming more common these days, especially with the burgeoning inflation rate and surging prices of commodities.
As of December 31, 2022, 1,254 employees were working at iRobot.
Because of the impending series of layoffs in the company, iRobot is looking forward to seeing more "muted" orders that are coming in Q1 2023.
The Q4 earnings report showed that the company recorded $84.1 million in losses out of $357.9 million in revenue. This indicates that it's about time to strategize new plans for the sake of both the company and its labor force.
Amazon's Acquisition of iRobot
The layoff announcement came during the ongoing process of acquisition by Amazon.
According to the Seattle-based company back in August 2022, the cost of this deal will reach $1.7 billion. However, it remains under antitrust review by the Federal Trade Commission so it's held at the moment.
It's interesting to know that the global economic downturn has been forcing companies to arrive at unexpected decisions like sudden layoffs.
Whether it's about promotion or layoff, the consequences of their actions will heavily depend on what the board wanted to happen.
Before the 2023 layoff, iRobot previously axed 100 employees. The company cited that this strategy will help cut operational costs to improve its profitability.
As the market conditions are expected to be more challenging this year, many companies could anticipate more layoffs in the future.
Related Article: iRobot's New Roomba Combo j7+ Comes with an Automatic Mop: Here's How it Works
Meta and TikTok Layoffs
Facebook's parent company Meta is also one of the latest tech giants that will be involved in another bout of layoffs.
According to The Daily News, the company reportedly "delayed" the budget for its team. The schedule of the next layoff is expected to take place in March.
At the time, Meta has not yet mentioned the specific number of workers that will leave the company soon.
Meta CEO Mark Zuckerberg that the decision of removing some people from middle management will help the company to establish faster decisions.
He added that they would also cut projects that are underperforming so everyone can focus on what's more efficient for the organization.
Meanwhile, Tech Times reported that TikTok layoffs have already started in India. With the ban of the video-sharing app in the country, ByteDance decided to remove support for the New Delhi-based workers.
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