iRobot Layoffs 2023: What to Know About the Latest iRobot Job Cuts

  • Yesterday, iRobot (IRBT) announced that it would lay off about 85 of its employees.
  • The iRobot layoffs are occurring after the company agreed to be acquired by Amazon (AMZN).
  • IRBT is struggling amid the goods-to-experiences shift of consumer spending.
iRobot layoffs - iRobot Layoffs 2023: What to Know About the Latest iRobot Job Cuts

Source: Grzegorz Czapski /

iRobot (NASDAQ:IRBT), which develops robotic systems used to clean homes, announced yesterday that it would lay off about 85 of its workers. The iRobot layoffs will affect about 7% of the firm’s workforce.

The robot maker dismissed about 100 of its workers in August 2022. Those iRobot layoffs occurred during the same month that it agreed to be acquired by Amazon (NASDAQ:AMZN). The Federal Trade Commission (FTC) is currently evaluating the acquisition.

Explaining the reason for its latest job cuts, iRobot reported that it expects “market conditions will remain challenging into 2023.”

Also yesterday, IRBT announced that its sales last quarter had fallen 21.4% versus the same period a year earlier to $358 million. Additionally, it lost $61.6 million, excluding certain items. In Q4 2021, the company’s adjusted operating loss came in at $33.6 million. IRBT reported that its profitability was negatively impacted last quarter by “increased promotional activities.”

IRBT Stock: The Goods-to-Experiences Shift

iRobot has likely been a victim of the shift in consumer spending that has occurred amid greatly reduced fears about the coronavirus in recent months. Specifically, during this time, consumers have generally spent much more money on physical products and much more on experiences.

As a result, many sellers of products like PCs, mobile phones and apparel have struggled. Meanwhile, hotel owners, airlines, restaurant owners and online travel agencies have generally reported strong results.

Illustrating the strength of companies within the experiences space, in recent days, Uber (NYSE:UBER), Marriott (NASDAQ:MAR) and Avis (NASDAQ:CAR), which are all in the “experiences” category, have reported generally strong financial results.

Going forward, investors should try to determine whether this divergence remains intact. If it does, they should continue to buy the stocks of companies within the experiences sector.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC