Coronavirus closure

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

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

GoDaddy logo
GoDaddy is laying off 331 people in Austin. Courtesy of GoDaddy

GoDaddy, a tech company whose specialties include registering internet domain names and setting up web hosting, is saying goodbye to Austin. In a move that’s prompting the layoffs of 331 employees, GoDaddy is shutting down its two Austin offices.

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

“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,” Bhutani writes.

Bhutani says GoDaddy is shuttering its Austin locations because they “carry unique costs and complexities.” Remaining members of the social media sales team will work from home, he says.

On its website, GoDaddy says it employed more than 700 people in Austin before the layoffs. Its local offices are at 2010 E. Sixth St. and 600 Congress Ave.So far, Austin is the only place where GoDaddy is closing offices.

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

GoDaddy gained its local presence through the $127 million purchase in 2018 of Main Street Hub, a social media marketing platform. Matt Stuart and Andrew Allison co-founded Main Street Hub in San Francisco in 2010. The company moved its headquarters to the Capital City in 2011.

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

In all, the corporate restructuring announced by Scottsdale, Arizona-based GoDaddy affects 814 employees who are being laid off, are relocating, or are switching to other jobs. Of those 814, about 40 percent are being offered different roles. For those employees who are exiting the company, September 1 is their last day.