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Amazon Terminates iRobot Deal Citing Regulatory Concern; iRobot To Lay Off 31% of Staff (irobot.com) 50

Amazon will not move forward with a planned acquisition of vacuum-maker iRobot, the two said Monday, citing "no path to regulatory approval" as the deal-breaker. Amazon announced its plan to acquire iRobot for $1.7 billion in August 2022.

iRobot said separately that it will lay off about 350 jobs, or 31% of its workforce.
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Amazon Terminates iRobot Deal Citing Regulatory Concern; iRobot To Lay Off 31% of Staff

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  • How did iRobot get itself into such trouble that it needs to hire a "restructuring" consultant and fire 31% of its staff? No wonder they were looking to be acquired, but one wonders what kind of PHBs run successful companies into the ground...

    • by HBI ( 10338492 )

      They spent 15 years selling gimmicky toys that had all kinds of reliability issues and you wonder why they aren't successful? If I see the name iRobot, I don't want to buy another. The same kind of thought process wondered why the big 3 US automakers have been in fairly consistent trouble over the past 50 years.

      • They did a lot more than sell consumer items.

      • by AmiMoJo ( 196126 )

        I think the issue is less the quality of their products (other manufacturers weren't much better), and more the fact that so many others entered the market and the tech is basically as good as it needs to be.

        iRobot has some fancy things like a shit sensor that prevents it smearing faeces over the floor, but most people opt to save hundreds of Euros and just avoid having the pets use the floor as a toilet. The basic floor vacuuming and mopping features are available from reputable manufacturers at a fraction

    • by supremebob ( 574732 ) <themejunky AT geocities DOT com> on Monday January 29, 2024 @09:48AM (#64197166) Journal

      Well... they made lousy "vacuum cleaner" robots that did fun things like eating cat toys and dragging pieces of shit across the floor.

      Once you get the experience the "fun" of cleaning up the aftermath of an event like that in person, you're not exactly eager to become a repeat customer.

      I'd imagine that they fixed these issues in the later models, but only on the more expensive versions.

      • by Anonymous Coward

        Well... they made lousy "vacuum cleaner" robots that did fun things like eating cat toys and dragging pieces of shit across the floor.

        Maybe don't let your dog shit on the floor? How is that the fault of the robot?

      • Well... they made lousy "vacuum cleaner" robots that did fun things like eating cat toys and dragging pieces of shit across the floor.

        Once you get the experience the "fun" of cleaning up the aftermath of an event like that in person, you're not exactly eager to become a repeat customer.

        I'd imagine that they fixed these issues in the later models, but only on the more expensive versions.

        Since iRobot is still in business after many many years of dragging their customers through the shit, I'd imagine you're underestimating the value of marketing to lazy people who never want to vacuum.

        Underestimating by a metric shit-ton or seven.

    • How did iRobot get itself into such trouble that it needs to hire a "restructuring" consultant and fire 31% of its staff? No wonder they were looking to be acquired, but one wonders what kind of PHBs run successful companies into the ground...

      Simple, the competition just got "good enough".
      Cheap chinese robotic vacuum cleaners and mops came into the scene, some, like my trusty ecovacs, does a completely random walk, and used every other day will do the deed, others, matched the lidar and automaping prowess of iRobot for dimes on the dollar.

      So now, iRobot got disrupted.

      • Not only did they get undercut but I think a lot of the brand recognition eroded away. If I search "robot vacuum" on Amazon, the first Roomba is the 13th result, and it's 2-3 times as expensive as the virtually indistinguishable offerings of other "brands" like Lefant, Laresar, and HONITURE. It's hard to put a premium on brand recognition when the product has become so generic. Maybe they should've went all in on pumping up the brand into a premium name like Dyson. Then they could at least turn their produc

    • Amazon doesn't care about the company. All modern business is based on buying a smaller company, gutting it for the IP, and selling off the remainder. Years ago people cared about growing a company long term but now it's all about how fast a profit can be turned.

      • by ceoyoyo ( 59147 )

        Ironic that you make that complaint about Amazon, a company that has been around for thirty years and didn't have a profitable year for almost a decade.

    • by jfrorie ( 975669 )
      China is eating their lunch. A lot of the newer robots have lidar, and iRobot is still doing bump and run with some type of inferior visual mapping. I see complaints about it on reddit a good bit. I gave up on Roomba a while back. Roborock is the first robot vacuum I've had that last more than 3 months.
      • /\/\/\ This! Ditto!
        I am very impressed with Roborock - mapping, navigating and planning capabilities are impressive. It's vacuuming is not perfect but alas it's still going strong after 3+ years.

      • Chinese robots probably are not sucking just the dirt on the floor....
    • I went pretty deep into the application process for a PM role at iRobot maybe 10 years ago. As a company, they had the vacuum bot - they had sold about 30 million of those - and they had the Swiffer bot and a mopping bot that had both sold about 100x fewer units. They had an attendance robot (I think that's what they're called - essentially an ipad on a scooter that a kid in a hospital room can roll around school remotely so they can "attend" school). iRobot's was far and away the most expensive with the l

    • by tlhIngan ( 30335 )

      How did iRobot get itself into such trouble that it needs to hire a "restructuring" consultant and fire 31% of its staff? No wonder they were looking to be acquired, but one wonders what kind of PHBs run successful companies into the ground.

      iRobot is more than robotic vacuum cleaners. They actually started as a supplier of military robots. They make bomb disposal robots, rapid deployable robots (i.e., robots you throw over a wall and control) and such. Their whole consumer division was started as an offshoo

  • by PPH ( 736903 ) on Monday January 29, 2024 @11:14AM (#64197492)

    ... that really sucks.

  • Memory and Opinion (Score:4, Informative)

    by ElizabethGreene ( 1185405 ) on Monday January 29, 2024 @11:18AM (#64197510)

    Robot uprising jokes aside, we have to be able to trust our home appliances. Violating that trust is a red line. iRobot is the company that leaked pictures, taken by a home cleaning robot, of a customer sitting on the toilet. That is unacceptable. I understand that those customers were testers that had agreed to data sharing, but leaking that data is not ok.

    I am glad the merger didn't go through and will not shed a single tear if the company ceases to exist. I say this as a person with two Roombas in the closet, replaced by Uefy units.

    • by Plugh ( 27537 )
      Trust? Only idiots and the about-to-be-pw0ned *trust*. If you want a robot to learn the details of your household, for the love of sanity, open source your vacuum [github.com]. Along with privacy you also do not have to care what regulators think.
  • by geekmux ( 1040042 ) on Monday January 29, 2024 @12:38PM (#64197868)

    So, Amazon pulled out of a proposed merger with a large corporation that probably fell apart right after plenty of documents heavily seasoned with NDA were sprinkled around, so let's talk about actual intentions for a moment.

    Amazon proposed a merger to get access to IP to develop their own line of hardware, which they can sell at a loss until the competition is struggling to barely stay alive...THEN they'll look to buy out the competition at a fraction of current market price. The new "merger" should dispel any and all legal issues that may arise.

    Yeah. They DO have that kind of power.

    • That's why proposed acquisitions have a breakup fee where you have to pay even if you don't go through with it. In this case it is $94 million.

  • by Miamicanes ( 730264 ) on Monday January 29, 2024 @03:06PM (#64198348)

    ~15 years ago, I spent almost a Kilobuck on an iRobot Scooba floor-washing robot.

    It was awesome. For about a year and a half. The rubber nozzle tore & I replaced it. And replaced it again about a year later. Then the pump died, and I replaced it. Unfortunately, by the third time the rubber nozzle tore, iRobot quit selling replacement parts for it.

    I'll never buy another iRobot product. I can deal with tearing it down once or twice a year to replace de-facto consumable parts. I can not, and will not, spend another thousand bucks on an expensive robot with proprietary consumable parts that becomes unobtainable & effectively condemn it to a junk box a couple of years later.

"An idealist is one who, on noticing that a rose smells better than a cabbage, concludes that it will also make better soup." - H.L. Mencken

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