Big-name tech company shuts down Austin offices and lays off hundreds

GoDaddy, a technology company that specializes in Internet domain name registration and web hosting, is saying goodbye to Austin. GoDaddy is closing its two Austin offices in a move that results in the layoff of 331 employees.

In an email to employees posted on the company’s website on June 24th, GoDaddy CEO Aman Bhutani attributes the downsizing of its local social media sales team to “the seismic shift caused by COVID-19.”

“Although the team has made progress in selling our new lower-cost offering, and demand and economics are under pressure, we can no longer sell these products as we do today,” writes Bhutani.

According to Bhutani, GoDaddy is closing its Austin locations because of “unique costs and complexity.” The remaining members of the social media sales team will work from home, he says.

On its website, GoDaddy says that Austin had more than 700 employees prior to the layoffs. The local offices are located at E. Sixth St. 2010 and 600 Congress Ave. So far, Austin is the only place GoDaddy closes offices.

“We’ll be evaluating our corporate real estate across GoDaddy, knowing we need to use our space differently in a COVID-19 world,” says Bhutani.

GoDaddy gained its local presence by purchasing Main Street Hub, a social media marketing platform, in 2018 for $ 127 million. Matt Stuart and Andrew Allison founded the Main Street Hub in San Francisco in 2010. The company relocated its headquarters to the capital in 2011.

When Main Street Hub announced plans to build a new headquarters in East Austin in 2017, the building should be able to accommodate more than 1,000 employees.

In total, the corporate restructuring announced by GoDaddy in Scottsdale, Arizona, affects 814 employees who are laid off, relocated or transferred to other jobs. Of these 814, around 40 percent are offered different roles. For those employees who leave the company, September 1st is the last day.

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