Amazon has ended its bid to accumulate iRobot, the maker of robotic vacuums, after working up in opposition to stiff headwinds with European regulators.

In a press launch, the businesses mentioned that they noticed “no path to regulatory approval within the European Union,” stopping them from transferring ahead. Amazon and iRobot mutually agreed to terminate their previously-announced acquisition settlement, underneath which Amazon would’ve bought iRobot for ~$1.7 billion in money (or barely decrease).

“We’re upset that Amazon’s acquisition of iRobot couldn’t proceed,” mentioned David Zapolsky, Amazon SVP and basic counsel, mentioned in a press launch. “We’re believers in the way forward for client robotics within the house and have at all times been followers of iRobot’s merchandise, which delight shoppers and resolve issues in ways in which enhance their lives. Amazon and iRobot have been excited to see what our groups may construct collectively, and we’re deeply grateful to everybody who labored tirelessly to try to make this collaboration a actuality.”

iRobot will obtain a $94 million termination charge from Amazon because of the nixed bid. However the cancelled acquisition will even necessitate an “operational restructuring plan,” iRobot says, involving shedding roughly 350 iRobot workers — roughly 31% of the corporate’s workforce — by late March.

Colin Angle, iRobot’s chairman of the board of administrators and CEO, has stepped down as each chairman and CEO, and Glen Weinstein, iRobot’s EVP and chief authorized officer, has been appointed interim CEO. iRobot lead unbiased board director Andrew Miller has been appointed chairman of the board, and iRobot has employed a “turnaround professional,” Jeff Engel, to steer implementation of the restructuring.

“iRobot is a strong firm, and its mission stays to vary the world empowering folks to do extra,” Angle mentioned in a LinkedIn put up. “It’s the house to proficient builders, to optimism, to chance and to unbridled dedication and resilience. To these I’ve shared this journey with, I’m endlessly grateful. I look ahead to serving as a senior advisor and remaining on the board via my present time period.”

iRobot goals to save lots of $80 million to $100 million via renewed agreements with manufacturing companions on extra enticing phrases; $20 million via elevated offshoring; and $30 million by consolidating its gross sales and advertising spending. The corporate additionally plans to cut back its company actual property footprint and pause all work associated to “non-floorcare improvements,” together with air purification, robotic garden mowing and training.

iRobot anticipates the restructuring will price between $12 million and $13 million, primarily for severance and bills associated to the layoffs, over the primary two quarters of 2024, with the bulk anticipated in Q1.

Amazon’s megabucks iRobot deal attracted regulatory scrutiny from the beginning. Whereas the U.Ok. finally accredited the acquisition after preliminary reluctance, the European Fee pushed forward with a extra in-depth probe, whereas within the U.S., the Federal Commerce Fee mulled an official investigation into the deal.