The Wall Street Journal's editorial board placed blame for the company's demise on the Federal Trade Commission under Chair Lina Khan, which opposed Amazon's $1.7 billion bid to acquire iRobot. That deal collapsed in January 2024 amid regulatory pressure from both the FTC and European antitrust authorities. Senator Elizabeth Warren and other progressives had urged Khan to block the acquisition, arguing in a September 2022 letter that Amazon is "'almost universally recognized' as the leader in warehouse and fulfillment robotics space" and that the deal "would open up a new market to Amazon's abuses."
After the deal fell through, iRobot cut 31% of its workforce and moved "non-core engineering functions to lower-cost regions." The company had shifted production to Vietnam to reduce its exposure to China but was hit by tariffs under Trump's Liberation Day trade measures -- initially 46%, later reduced to 20%. iRobot said the trade uncertainty made it difficult to operate.
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