US Company Forced To Lay Off Hundreds After Regulators Signal Plans To Block Merger

Daily Caller ^ | January 29, 2024 4:33 PM ET | Jason Cohen, Daily Caller News Foundation

[Red Badger]

Technology company iRobot is undergoing major layoffs after the Federal Trade Commission (FTC) and European regulators opposed its acquisition by Amazon on Monday, multiple outlets reported.

Amazon had planned to acquire iRobot, which is most known for making robot vacuums, but the deal could not go through because of regulatory hurdles, according to a press release announcing the termination. iRobot immediately disclosed impending layoffs affecting about 350 employees, constituting 31% of its total workforce, after the termination announcement.

The companies primarily attributed the dissolution of the deal to the European Union (EU), stating in the press release that “Amazon’s proposed acquisition of iRobot has no path to regulatory approval in the [EU] preventing Amazon and iRobot from moving forward together—a loss for consumers, competition, and innovation.”

European Commission Executive Vice-President Margrethe Vestager noted the EU has “been in close contact with the US Federal Trade Commission” during its investigation on the potential consequences of the merger in a Monday statement following the termination.

The FTC notified Amazon of its intent to contest the merger, according to The Washington Post and The Wall Street Journal.

Amazon had a meeting slated with FTC commissioners this week, which could have been its final opportunity to advocate for the deal before a lawsuit, according to the Post. Amazon had received a warning about potential forthcoming FTC litigation the previous week, according to the WSJ.

“The calling off of this deal because of the actions European regulators are taking demonstrably leave Americans worse off, with iRobot laying off 31% of its employees and the CEO stepping down,” James Czerniawski, senior policy analyst at Americans for Prosperity, told the Daily Caller News Foundation. “This deal represented no legitimate competition concerns, and it is well beyond time for this administration to challenge the EU for its blatant targeting of American firms.”

iRobot declined to comment, pointing the DCNF to the press releases and flagging an upcoming earnings call on Feb. 27.

“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 Senior Vice President and General Counsel David Zapolsky said in the press release. “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—the very things that regulators say they’re trying to protect.”

The FTC did not immediately respond to the DCNF’s request for comment.

[Yo-Yo]

So I won't be able to say "Alexa, vacuum the living room"?

Good, because I don't have that spyware in my house to begin with.

[bert]

Amazon is bad

The decision is good

I want a robot vacuum but the wife will not have it

[Empire_of_Liberty]

I can’t get too teary-eyed at the loss of Chinese junk.

The only money, these days, is in spy-ware.

[LibertyOh]

Actually you already can
https://homesupport.irobot.com/s/article/1418

[who_would_fardels_bear]

If the merger had gone through there also would have been layoffs. That’s one of the major reasons for mergers: lower total labor costs.

[Yo-Yo]

Actually you already can

Figures.

[Vaduz]

Robot vacuums the pentacle of laziness

[DeplorablePaul]

We’ve had various I Robot models over the years. They vacuum pretty good. Especially if you have pets.

[Red Badger]

https://en.wikipedia.org/wiki/Pentacle

[dfwgator]

Good. We need to stop this consolidation madness. We’re going to end up with one company ruling the world.

[voicereason]

If the merger had gone through there also would have been layoffs. That’s one of the major reasons for mergers: lower total labor costs.

In McKinsey speak....the proper term is 'Synergies'.

[dfwgator]

McKinsey is the epitome of evil.

[pas]

What do stars have to do with this? :)

[Jambe]

I-Robot. . . . .sucks to be them?

[deport]

Robot vacuums the pentacle of laziness

************

Lots of items we use could fit that category.

[ducttape45]

Same here, I refuse to let anything like that in my household.

[Vaduz]

Yes far to many on the lazy list hand me another box of bon bons hun.

[Vaduz]

Robot vacuums the pentacle of laziness

That’s all I typed not sure what your asking?.

[fireman15]

Robot vacuums the pentacle of laziness

I suspect that you have been victimized by your computer, tablet or phone's autocorrect feature which is the pinnacle of laziness.

We have never had a robot vacuum but my sister swears by hers. I am not sure how a glorified sweeper is capable of picking up a whole lot of dirt... but in my sister's case she has 3 dogs and is happy with the performance of hers. Unfortunately my wife has health problems that prevent her from dragging our upright up and down the stairs in our 3-story home or pushing it across all of our old shag carpet; that is my job.

We have a giant 20 pound fluffy fur ball Siberian cat running around the house who is constantly shedding, so it takes an annoying amount of vacuuming to keep the carpets in this place clean. I am not sure that a robot vacuum would be able to help a lot; if they were not so expensive it might be tempting.

What the pinnacle of laziness is however people who do not keep their homes clean. But, I have to admit if my wife was not such a neatnick our house would be considerably more messy and dirty.