GoDaddy Social (formerly Main Street Hub) on Wednesday announced a restructuring plan that includes shutting down its two Austin offices.
GoDaddy (GoDaddy Social’s parent company) said the restructuring is due to fallout from the coronavirus crisis. It will affect about 12% of the company’s workforce, or about 814 employees.
Of those cuts, 331 are sales employees with GoDaddy Social operations in Austin.
GoDaddy entered the Austin market in 2018 with the acquisition of online marketing firm Main Street Hub for $125 million in cash. Main Street Hub was founded in 2010 to manage social, web and email marketing for small businesses.
Despite challenges brought on by the pandemic, GoDaddy said it has seen strong demand for its domains and websites and expects second quarter revenue to exceed previously issued guidance of $790 million by about 1%.
However, the company said it has seen a decline in demand for higher-priced services such as GoDaddy Social. Many of GoDaddy Social’s customers are small businesses that are not closed or are significantly cutting back expenses.
“The GoDaddy Social team in Austin has turned over every stone in the last three months to address the seismic shift caused by COVID-19,” GoDaddy CEO Aman Bhutani said in a letter to employees. “We cannot continue to sell these products the way we do today.”
If you are a current GoDaddy Social customer or were evaluating them as a solution to your restaurant’s social media management, it may not be a wise choice to sign on with them. We offer more services for less money and we specialize exclusively for restaurants. If you’re interested in chatting about how we can be a better partner (who is running a healthy, sustainable business model) let’s chat! If you’re looking for a more robust comparison, here are our competitor comparisons.
Did you know?
We've been managing social media accounts for restaurants since 2012. For almost a decade, we've partnered with restauranteurs who are serious about using social media to generate business. Whether you're a good fit for our service or not, let's schedule a call and we'll give you free personalized advice on how to improve your social media presence. Either way, you'll walk away from the call more confident about your ability to promote yourself online - completely for free.
