GoDaddy Lays Off Iowa Workers After Buying Back $1.3 Billion In Stock

Photo by Rubaitul Azad on Unsplash

By Amie Rivers

February 17, 2023

A technology company with a 300-person office in eastern Iowa will lay off nearly three dozen workers here this spring.

Arizona-based GoDaddy announced Feb. 8 it would lay off 8% of its global workforce, or 530 workers. That will include 35 workers at its Hiawatha customer service and support center, which is in the process of moving to Cedar Rapids later this year.

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The layoffs will happen by May 1, according to Iowa’s WARN website, which posted the layoff Feb. 9.

CEO Aman Bhutani said in an open letter that all employees will receive 12 weeks of “paid administrative leave with continued core benefits coverage,” as well as four or more weeks of severance pay depending on how many years they have with the company.

Bhutani said the company had “made progress on our 2022 strategic initiatives” but that it wasn’t “sufficient to avoid the impacts of slower growth in a prolonged, uncertain macroeconomic environment.”

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It certainly seems like the company was doing well: GoDaddy posted a 45% increase in income over the prior year, according to its most recent financial report.

The company said it expects to save roughly $55 to $65 million on the layoffs. That’s 5% of the $1.3 billion it spent in the past year on stock buybacks.

 

by Amie Rivers
2/17/23

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  • Amie Rivers

    Amie Rivers is Starting Line's community editor, labor reporter and newsletter snarker-in-chief. Previously, she was an award-winning journalist at the Waterloo-Cedar Falls Courier; now, she very much enjoys making TikToks and memes. Send all story tips and pet photos to [email protected] and sign up for our newsletter here.

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