iRobot reducing workforce by 7%

iRobot has initiated a new restructuring program that is expected to deliver net annualized savings of approximately $14M. As part of this restructuring, the company plans to reduce its workforce by approximately 7%, or approximately 85 employees, primarily by streamlining certain functions across the company. In addition to the reduction in force, iRobot’s 2023 operating plan incorporates scaled back working media and other demand-generation activities, limited investment in non-robotic product categories and minimal new hiring plans in 2023. In conjunction with the workforce reduction, iRobot expects to record restructuring charges of approximately $4M in 1Q23. The company anticipates that the decline in 2023 GAAP and non-GAAP operating expenses will range from mid-single digits to low double-digits on a percentage basis from 2022 GAAP and non-GAAP levels.