FTC Block of iRobot Deal Means 105 More Lost Jobs
The job cuts keep mounting at iRobot, the Massachusetts-based maker of the popular Roomba robot vacuum. In a November 6 10-Q filing with the U.S. Securities and Exchange Commission, iRobot announced 105 additional layoffs, which amount to 16% of its remaining workforce. This latest reduction adds to the 350 positions slashed in January after Amazon’s attempted acquisition of iRobot collapsed.
The European Commission planned to block the transaction, with assistance from the U.S. Federal Trade Commission (FTC). In her statement on the deal’s collapse, Margrethe Vestager, the competition chief for the European Commission, said, “During our investigation, we have been in close contact with the U.S. Federal Trade Commission.” The upshot: U.S. regulators, under the leadership of FTC Chair Lina Khan, aided and abetted foreign regulators so they could harm U.S. companies.
The aftermath has hit iRobot hard. In addition to the hundreds of layoffs, the company’s stock is down nearly 84 percent since January 1, 2024, harming shareholders and leaving the company in a vulnerable position.
Amazon had intended to acquire iRobot to create a stronger U.S.-based competitor in the global robot vacuum market, particularly against powerful Chinese rivals. With the acquisition dead, iRobot was forced to adopt aggressive cost-cutting measures, resulting in a workforce that has now been halved since the beginning of the year.
Amazon described the FTC’s intervention as “undue and disproportionate.” It is clear that the FTC’s approach has caused economic harm, rather than the consumer protections it aims to uphold. Indeed, failing to combine Amazon and iRobot means slower innovation for consumers and higher prices.
As Lina Khan and the FTC continue their crackdown on Big Tech, critics are increasingly questioning the consequences of the agency’s actions on American workers and industry. Meanwhile, iRobot’s now-former employees and angry investors are left picking up the pieces of a deal that never was.