IONOS announces layoffs

Major domain and hosting company to trim workforce by over 10%.

Domain name and hosting company IONOS (ETR: IOS) today announced plans to reduce its headcount.

The company, one of Europe’s larger domain providers with customers worldwide, said it will shrink its workforce from 3,800 to 3,350 full-time employees.

The reduction will be split about 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 companies to immediately terminate employees.

IONOS’ move comes as artificial intelligence affects not only the workforce requirements of tech companies, but also demand for the products they sell.

The company 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 – including 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 already laid off workers this year.