GoDaddy Layoffs 2023: What to Know About the Latest GDDY Job Cuts
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Yesterday, Go Daddy (NYSE:GDDY) CEO Aman Bhutani sent an email message to the company’s employees. Unfortunately, it was a notification that GoDaddy will be reducing its headcount. Still, GDDY stock managed to remain above breakeven this morning.
GoDaddy is based in Arizona and offers cloud-based services. The company is best known for domain name registration and web hosting.
In late January, GoDaddy announced the appointment of two new directors to the company’s board of directors. So some investors may have assumed that GoDaddy was in expansion mode.
However, yesterday people learned that the company is actually shrinking. Bhutani informed GoDaddy employees via email that some of them will be leaving the company and this news is now publicly available via a press release.
According to the CEO, GoDaddy plans to reduce its global team by about 8%. Bhutani seemed to suggest that “slower growth in a protracted, uncertain macroeconomic environment” is the reason for GoDaddy’s downsizing.
What about the layoffs at GoDaddy?
While news of impending job cuts may worry some financial traders, GDDY stock did not fall in early morning trading today. In fact, by 10:30 a.m. EST it was actually rising slightly.
Interestingly, the market did not react negatively to GoDaddy joining the Tech Layoff Club. Perhaps Wall Street has gotten used to publicly traded tech companies making layoffs. Also, investors might view GoDaddy’s downsizing as a positive event, as it should help the company trim its spending.
Bhutani’s message also announced that the company’s Media Temple and Main Street Hub brands will be merged into the GoDaddy brand. However, the 123 Reg brand “will continue to exist as a customer-centric brand.”
Finally, the CEO said GoDaddy will have a “town hall” tomorrow where the company will “share more context on these changes.” As such, GDDY stock traders should be alert to this and any other significant events affecting GoDaddy.
At the time of publication David Model had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author and are governed by InvestorPlace.com Posting Policies.