iRobot is cutting 80 jobs, including 40 in Bedford
Bedford’s iRobot Corp., which makes robots for both military uses and for performing household chores, said Wednesday that it will cut about 80 jobs, or 13 percent of its workforce, as part of a corporate restructuring.
Of the jobs being cut, 40 are in Bedford, and another 30 are a result of iRobot’s decision to close its maritime office in North Carolina.
The company said it expects to have a total head count of 510 jobs after the restructuring is completed.
In early afternoon trading, iRobot shares were hovering at $18.37, down $4.27 or nearly 19 percent.
IRobot said in a Wednesday statement: “Due to the current defense spending environment and expectations for decreased spending in 2013, iRobot is implementing a broad restructuring of the business. The company will close its maritime office in Durham, N.C., end productizing Seaglider, and right-size the workforce by approximately 80 full-time employees and 11 contractors, or 13 percent of the total workforce.”
In February, iRobot warned of possible losses as cuts in defense spending were expected to reduce demand for its military robots, which perform such battlefield tasks as reconnaissance and neutralizing explosive devices.
The company issued its third-quarter financial results Tuesday, and in a press release about third-quarter earnings, iRobot said that the outlook for its military robots had “deteriorated, and we expect further declines in 2013.”
For the third quarter, iRobot said that revenue was $126.3 million, up from $120.4 million for the same quarter a year ago. Net income was $15.2 million versus $14.1 million in the year ago quarter.
The company noted that its home robot unit has had “an outstanding year.” IRobot also sees an opportunity in designing robots that can assist health care professionals.Chris Reidy can be reached at email@example.com.