IRobot Plans To Reduce Workforce By About 7%

(RTTNews) - iRobot Corp. (IRBT) plans to reduce its workforce by about 7%, or approximately 85 employees, primarily by streamlining certain functions across the company.

In addition to the reduction in force, iRobot's 2023 operating plan incorporates scaled back working media and other demand-generation activities, limited investment in non-robotic product categories and minimal new hiring plans in 2023, the company said in a statement.

The company said it has initiated the new restructuring program that is expected to deliver net annualized savings of approximately $14 million.

iRobot reported that its fourth quarter net loss widened to $84.10 million or $3.07 per share from last year's $31.51 million or $1.17 per share, reflecting the impact of lower revenue and a lower gross profit margin primarily attributable to increased promotional activities.

Non-GAAP net loss per share was $1.52 for the fourth quarter of 2022 compared to a non-GAAP net loss per share of $1.05 in the fourth quarter of 2021. Analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter of 2022 was $357.9 million, compared with $455.4 million in the fourth quarter of 2021. Analysts expected revenue of $379.14 million for the quarter.