AUSTIN (KXAN) — Arizona-based company GoDaddy announced changes and layoffs related to the financial impacts of the coronavirus pandemic Wednesday that will significantly hit the company’s operations in Austin. GoDaddy refers to itself as “the world’s largest services platform for entrepreneurs around the globe.”
In an email to employees, GoDaddy CEO Aman Bhutani explained that a total of 814 employees would be impacted by these changes with more than 40% of those employees being “offered alternate roles.” That means more than 400 GoDaddy employees will be laid off and not offered alternate roles at the company.
The largest area of job loss appears to be in GoDaddy’s Social Sales operations in Austin. Bhutani said, due to reduced demand and “economics under pressure,” the company cannot continue selling those products in its current way. 331 employees from the sales team will be laid off, the letter explained.
Additionally, the letter explained that GoDaddy will be closing both its Austin locations because those facilities “carry unique costs and complexities.” Austin is the only GoDaddy location where decisions have been made about office locations, the letter said.
Laid off employees will work their last day on Sept. 1. The email noted that employees who are laid off will be placed on paid administrative leave from June 24 through September 1. These employees will maintain the same healthcare benefits through September 30. After September 1, these employees will have two weeks of pay for each year completed with a minimum of 4 weeks. GoDaddy will also provide elected health coverage from October 1 through December 31, paying COBRA premiums in full.
“I know that today will cause a tear in our core fabric and it will take time to mend,” Bhutani wrote.
He told employees that these changes are “a function of our current environment” and not sparked by any individual or team.
“You are talented folks who have contributed positively to the company,” he said.
GoDaddy told KXAN via email that the company will continue to have employees based in Austin, though the company did not mention how many employees would be based in Austin.