Amazon Drops iRobot Deal; Roomba Maker Cuts 31% of Staff (1)

Amazon.com Inc. has abandoned its planned $1.4 billion acquisition of Roomba maker iRobot Corp. after clashing with European Union regulators who had threatened to block the deal.

The fallout came quickly. IRobot, which has been struggling recently, said Chief Executive Officer Colin Angle has stepped down as the company embarks on a restructuring plan that will result in about 350 job cuts, or 31% of the workforce. The vacuum maker’s shares tumbled 19% in New York to $13.80, their lowest level since 2009. Amazon’s shares were up less than 1% at $160.07.

The decision is a sign of the intense ...