Domain registration and web hosting giant GoDaddy is laying off employees and doing a restructuring of its business due to the impact of the Covid-19 virus.
Austin offices of GoDaddy will be closed 331 people will be laid off, mainly from its social media sales team. The information was given to employees by GoDaddy’s CEO Aman Bhutani, on Wednesday morning.
Interestingly enough, the company expects the revenue for the second quarter of 2020 to top its previous 790 million dollar guidance by around one percent.
The company is restructuring as its facing significant hindrances with outbound sales efforts and its own GoDaddy Social product, since customers are still closed.
The Arizona sales team will be consolidated while GoDaddy is laying off one tenth of its work force. More specifically, 814 members of the team across the company will be laid off. Some of the employees will however be offered alternate roles, promised by Bhutani.
The move will impact greatly the Austin team, as both offices will be closed. The letter from Bhutani states:
“The Social team in Austin has turned over every stone in the last three months to address the seismic shift caused by COVID-19. While the team made strides in selling our new lower-cost offering, with reduced demand and economics under pressure, we cannot continue to sell these products the way we do today. As a result, 331 team members from the sales team will be departing GoDaddy.”
In adition, the company is reducing its Social Fulfillment and Customer Success teams with up to 120 employees.
GoDaddy will change course for its sales efforts to one office in Arizona. 134 people in Iowa will be offered relocation to Arizona while some of them will also have the opportunity to move into inbound sales in Iowa.
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The domain name registrar giant is offering a big exit package to people leaving the team. They will receive pay until September 1 despite stopping work. After, they will receive four weeks of severance, at minimum.
People part of the GoDaddy team for three or more years get additional severance. GoDaddy will also pay for healthcare till the end of the year, including COBRA premiums paid in full, for employees being impacted.
GoDaddy is taking a 15 million dollar pre-tax restructuring charge for severance payment and similar benefit costs. The company has determined that specific lease assets with a book value of approximately 58 million dollars are impaired.