InvestorQ : If the web business is doing so well, why is GoDaddy laying off so many of its staff members in the last few weeks?
swati Bakhda made post

If the web business is doing so well, why is GoDaddy laying off so many of its staff members in the last few weeks?

Answer
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Dia Deshpande answered.
2 months ago


You may find it surprising why one of the world’s most popular web hosting and mail hosting services is laying off people. This is more so when this is the one business that has benefited substantially from the COVID-19 lockdown. Even, the leader GoDaddy has witnessed headwinds despite strong demand in its overall business.

It has been reported that GoDaddy has laid off hundreds of people in the US, especially those who are working in the company's social media sales team in Austin, Texas. GoDaddy conceded that it saw soft customer demand for certain higher-priced, DIY services such as GoDaddy Social and substantially reduced effectiveness of outbound customer calling.

The restructuring plan will impact a total of 814 employees hinting that almost none have been spared in the pandemic. However, over 40% are being offered alternate roles within the company. All the 331 members of the Social Team will be asked to leave and the division is planned to be shut down.

In the last few months, many companies that required an urgent restructuring have opted to use the COVID-19 as an opportunity to take up the process with little protest. GoDaddy expects June quarter revenues to exceed its guidance of $790 million. In a way, companies are using COVID to bring in more efficiency and effectiveness to their models.