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.”
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