IONOS discloses layoffs
Major domain and hosting firm to trim workforce by over 10%.
Domain name and hosting firm IONOS (ETR: IOS) today disclosed plans to reduce its headcount.
The firm, one of Europe’s larger domain providers with clients worldwide, stated it will shrink its workforce from 3,800 to 3,350 full-time employees.
The reduction will be split regarding equally between domestic and international operations.
IONOS noted:
The adjustment of the workforce structure is to be carried out primarily through voluntary redundancy programs, taking into account the specific requirements of the respective countries. The programs are to be designed in a socially responsible manner and in close partnership with employee representatives.
Employment laws in Germany (where IONOS is based) and much of Europe are relatively strong, making it difficult for firms to immediately terminate employees.
IONOS’ move comes as artificial intelligence affects not only the workforce requirements of tech firms, but also demand for the products they sell.
The firm stated:
Starting in 2027, IONOS expects the program to provide annual cost savings of up to EUR 30 million, the exact amount and timing of which will depend on the participation rates in the voluntary redundancy programs. The funds will be reinvested in a targeted manner – counting in AI product development and the further expansion of the cloud business.
Some of IONOS’ brands include InterNetX, Arsys, United Domains, and STRATO. IONOS also owns Sedo, which it is trying to sell. Sedo has by now laid off workers this year.
