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.
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.”
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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2 Comments on "GoDaddy Lays Off Iowa Workers After Buying Back $1.3 Billion In Stock"
Stock buybacks and senior execs getting massive bonuses seem to be the norm- even in this environment of tech layoffs
This is a disturbing trend. More and more IT companies buy back stock, give senior execs outlandish bonuses, and then lay off the rank and file. Repeat when necessary.