The two companies announced the decision Monday in the face of opposition from European regulators.

Amazon announced the deal in August 2022.

Reuters reported earlier this month the deal would be blocked by European Commission antitrust regulators because of concerns about the impact it would have on iRobot's rivals selling products on Amazon's online marketplace.

Amazon must pay iRobot a $94 million termination fee.

Now that the deal's off, iRobot on Monday announced a significant restructuring plan to reduce costs and said it would cut about 30% of its workforce.

The company's founder also said he has stepped down as iRobot's CEO.

Shares of iRobot are down 10% in late morning trading. Since the first reports saying the deal might be blocked by EU regulators two weeks ago, iRobot shares have lost half their value.