134 Iowa-based GoDaddy employees affected by restructuring

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Published: Jun. 24, 2020 at 10:03 AM CDT
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HIAWATHA, Iowa (KCRG) - An internet domain registrar and web hosting service said on Wednesday that it has implemented a restructuring that impacts hundreds of employees in response to a changing business environment.

GoDaddy, Inc., said that due to struggles with its outbound sales unit in the United States, 814 employees were either departing, relocating, or transitioning to other roles within the company. Of those, 134 of those jobs are at its Hiawatha-based facility. The company says the Hiawatha employees will be offered the chance to move to a consolidated sales center in Gilbert, Arizona, or, if they transitioned to sales from inbound support, they will have the opportunity to move back to inbound support in Iowa.

Those who are departing the company are being placed on paid administrative leave immediately through September 1. Severance packages after that date will provide two weeks of pay for each full year of service. A company spokesperson says every affected employee will receive a minimum of four weeks severance pay.

Healthcare benefits will be extended until September 30, with the company covering COBRA premiums for employees affected on an elective basis through December 31.

The company cited slower demand for “do-it-for-you” services that have a higher cost, and an overall decrease in sales from outbound calling to its customers.

The company will take a $15 million pre-tax charge in its financial reporting for severance and benefit costs but does not expect any impact on their overall revenue trajectory due to strength in other units.

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