Robotics company iRobot unveiled plans to shed a large chunk of its real estate portfolio as part of an aggressive plan to restructure its expenses after agreeing to call off its $1.45 billion merger with Amazon.
The Bedford, Massachusetts-based maker of Roomba robotic vaccums said it will list for sublease more space at its corporate headquarters and permanently close smaller offices around the world, a plan that is also expected to result in hundreds of layoffs and reduce other operational expenses as part of the company's return to profitability.
"IRobot can — and will — grow its presence," Andrew Miller, iRobot's board chairman, said in a statement. "To do this successfully, however, we must rapidly align our operating model and cost structure to our future as a standalone company. Though decisions that impact our people are difficult, we must move forward with a more sustainable business model and a renewed focus on profitability."
The deal with Amazon was unveiled in mid-2022 as part of the Seattle-based retail behemoth's plan to strengthen its stake in the consumer robotics industry. Over the course of 18 months, the merger met increased regulatory scrutiny from the Federal Trade Commission and the European Commission, pressure that ultimately resulted in the deal's abandonment.
IRobot has already brought on CBRE to help it market more than 104,620 square feet at its corporate campus at 4, 6 and 8 Crosby Drive in the Bedford Business Park, according to brokerage materials viewed by CoStar News. It relocated to the campus from Burlington, Massachusetts, after signing a 157,000-square-foot deal there in 2007.
The space — which includes amenities such as a cafe, fitness center and outdoor lounge areas — is available through April 2030.
The company also lists on its website offices in England, Spain, France, Japan, Austria, Belgium and elsewhere around the world. It is not yet clear which corporate hubs will be put on the chopping block, and iRobot did not respond to CoStar News' requests for additional details about its restructuring plans.
In the preliminary fourth-quarter results it released Monday, iRobot forecasted full-year 2023 revenue of about $891 million, a 25% drop from the $1.18 billion for the prior year. The robotics company also expected to post an operating loss of up to $285 million. It expects restructuring expenses will total up to $13 million, the bulk of which will land within the first quarter of this year.
By comparison, iRobot's annual revenue in 2020 was about $1.43 billion.
"We are disappointed with the company's 2023 performance, but our focus turns now to the future," Miller said.