Africa-Press – Tanzania. US-based e-commerce firm Amazon announced Monday that it has entered into a mutual agreement with consumer robot manufacturer iRobot to terminate their previously announced acquisition.
The agreement, which was signed in August 2022, aimed to allow Amazon to acquire iRobot for cash consideration, to invest in its innovation and support it in lowering prices of its products.
“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” Amazon SVP and General Counsel David Zapolsky said in a joint statement.
Colin Angle, the founder of iRobot, said: “The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make life better, and that our customers around the world love.”
iRobot’s products include the popular home vacuum robot known as the Roomba and other cleaning devices.
Amazon’s stock price was up 1.34% to close Monday at $161.26 per share on the Nasdaq.
In addition, iRobot announced in a separate statement Monday that it is planning to lay off 31% of its workforce, or around 350 employees.
The company said it aims to implement a restructuring plan designed to position itself for stabilization in the current market environment while focusing on profitability and extend its market share in the mid-tier and premium segments.
The firm saw its stock price plummet 8.77% to finish Monday at $15.50 per share on the Nasdaq.
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