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“Neato has brought valuable experience and innovations to Vorwerk’s product development in the field of cleaning robots over the past few years. However, Neato’s independent sales in e-commerce and brick-and-mortar retail with a focus on the USA has not been able to be successfully developed, so the company has not achieved the economic goals it has set itself for several years,” the company said in the release.
“As part of the consolidation, Neato will now be closed despite restructuring efforts, affecting 98 employees worldwide. Vorwerk will take over a 14-strong team in Milan to ensure the security of the infrastructure for Neato’s cloud services for at least five years. The availability of spare and consumable parts and service for necessary repairs are also guaranteed for at least five years.”
Vorwek Group decided to close Neato after “lots of restructuring efforts,” according to reporting from TechHive.
Neato Robotics was founded in 2005 by three Stanford alums and quickly became one of iRobot’s top competitors. The California-based company has been able to set itself apart because of its unique “D” shaped design that allows the robots to more precisely clean corners and other tricky areas, as well as by integrating innovative features into its robots. For example, in 2011, the company was early to introduce Wi-Fi connectivity to its devices.
The company’s latest robot, the Neato D10, was able to pick up 60% more dirt than its Neato D5, and includes a True HEPA filter that captures up to 99.97% of allergens and fine dust particles. It can clean up to 2,700 sq. feet on a single charge, making it capable of cleaning larger homes.
The decision to close Neato is part of a 2025 restructuring strategy for Vorwerk, which will focus more on selling vacuums and other robots in its Germany office.