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Amazon\u2019s deal to buy Roomba maker iRobot is off, the companies announced today<\/a>, after iRobot said the deal has \u201cno path to regulatory approval in the European Union.\u201d iRobot is also announcing that it\u2019s laying off around 350 employees, or around 31 percent of its workforce as part of a restructuring<\/a>. It expects to notify the majority of affected employees by the end of March.<\/p>\n<\/div>\n As part of the announcement, iRobot chair and CEO Colin Angle, who co-founded the company in 1990, is stepping down. iRobot\u2019s current executive vice president and chief legal officer, Glen Weinstein, will serve as interim CEO, and Andrew Miller, formerly lead independent director of the board, will become chair. iRobot says it hopes to return to profitability by focusing on its \u201cmost profitable customers, geographies, and channels\u201d including direct-to-consumer sales.<\/p>\n<\/div>\n The collapse of the deal means Amazon will pay a $94 million termination fee to iRobot, which will largely be used to pay off a $200 million loan it took out last year. As part of today\u2019s announcement, iRobot published its preliminary fourth quarter results for 2023 and said it expects to report a GAAP operating loss of \u201cbetween $265 and $285 million.\u201d<\/p>\n<\/div>\n The announcement comes after the $1.4 billion acquisition ran into difficulties with EU regulators. Last November, the European Commission said<\/a> it believed the deal had the potential to restrict competition in the robot vacuum cleaner market. Many of iRobot\u2019s competitors also sell their devices on Amazon\u2019s online store, and regulators were concerned that Amazon could delist or reduce the visibility of rival robot vacuum cleaners, restricting competition and \u201cleading to higher prices, lower quality, and less innovation for consumers.\u201d<\/p>\n<\/div>\n \u201cUndue and disproportionate regulatory hurdles discourage entrepreneurs\u201d<\/p>\n<\/div>\n<\/div>\n In a statement, Amazon SVP and general counsel David Zapolsky said he was \u201cdisappointed\u201d that the deal couldn\u2019t proceed. \u201cThis outcome will deny consumers faster innovation and more competitive prices, which we\u2019re confident would have made their lives easier and more enjoyable,\u201d Zapolsky said. \u201cMergers and acquisitions like this help companies like iRobot better compete in the global marketplace, particularly against companies, and from countries, that aren\u2019t subject to the same regulatory requirements in fast-moving technology segments like robotics. Undue and disproportionate regulatory hurdles discourage entrepreneurs, who should be able to see acquisition as one path to success, and that hurts both consumers and competition.\u201d<\/p>\n<\/div>\n In the time since announcing its plans to buy iRobot, Amazon\u2019s devices and services business has gained a new boss. When the deal was first announced, Dave Limp was still serving as Amazon hardware\u2019s top executive. But as of the end of October 2023, Limp had been replaced by Panos Panay<\/a>, who moved into the role from Microsoft, while Limp has transitioned to CEO of Jeff Bezos\u2019 aerospace company, Blue Origin.<\/p>\n<\/div>\n