Last week, web hosting giant GoDaddy announced that it would be shuttering two offices in Austin, TX in the wake of the ongoing COVID-19 pandemic.
The closures are a part of a larger restructuring plan, which is expected to affect about 814 employees, mostly within outbound and social sales and about 331 based within Austin specifically. Around 40% of those affected will be offered new jobs within GoDaddy and those who have been laid off will be offered administrative leave through September 1st with health benefits through September 30th.
This marks the end of GoDaddy’s time in Austin, which started two years ago following the $125 million acquisition of Main Street Hub, an online marketing firm founded in 2010 that focused on managing marketing for small businesses.
While the Arizona-based registrar has seen a demand for domains and websites during the pandemic, it has seen a decline in requests for more expensive services like GoDaddy Social since many of the small businesses in GoDaddy’s customer base are cutting back on expenses.
“The social team in Austin has turned over every stone in the last three months to address the seismic shift caused by COVID-19,” said GoDaddy CEO Aman Bhutani in an employee letter addressing the closures. “While the team made strides in selling our new lower-cost offering, with reduced demand and economics under pressure, we cannot continue to sell these products the way we do today.”