GoDaddy lays off 8% of workforce, CEO Aman Bhutani lays out the transition package

GoDaddy CEO Aman Bhutani recently announced a restructuring of the company, which includes layoffs of 8% of the workforce. The layoffs come amid challenging macroeconomic conditions due to the prolonged effects of the pandemic as well as the rising inflation.

Every division and numerous levels of the organisation are affected by the layoffs with the majority of the affected people in the US.

The layoffs are part of a larger reorganization effort to enable GoDaddy to continue providing innovative solutions and services while remaining competitive in the shifting global economy. GoDaddy has been under immense pressure from competitors and is seeking to differentiate itself from its rivals in the digital services marketplace.

"The planned impacts also include ongoing work to more deeply integrate three of our brands, Media Temple, Main Street Hub, and 123 Reg, into GoDaddy," Bhutani said in an email to staff members.

Employees were notified of the layoffs in a meeting invite with their superiors. Some of the employees who have yet to receive the pink slips will be notified by March 1, 2023.

"Media Temple customers and team members are already aware of the transition to GoDaddy infrastructure as we work to sunset the brand, and team members will receive a meeting invite today to explain the path forward for them," Bhutani informed.

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The CEO has reassured employees that the restructuring will help the company become more agile and resilient. He has also emphasized the importance of maintaining an open dialogue between employees and management.

Compensation and severance pay will be dependent on local laws. In a statement, Bhutani said, “Departing team members will be eligible for two additional weeks of severance per year worked (with a minimum of four weeks), extended healthcare benefits, as well as outplacement and immigration support to help with their transition.”

The GoDaddy layoffs come as the tech rout continues with many tech giants like Amazon, Google, and Microsoft having fired thousands of employees.

Also read: TikTok fires entire India staff, 40 remaining employees given pink slips 3 years after ban