San Francisco: With the Covid-19 constraints pushing many companies to go digital, domain hosting and web hosting giant GoDaddy has inevitably witnessed strong competition in its overall business. That, however, did not stop it from laying off hundreds of people in the US.
Many of the staff who have been told to leave work in the social media sales department at the organization in Austin , Texas.
In a statement on June 24, the company said it saw low consumer demand for certain higher-priced, do-it-for-you services like GoDaddy Social, and decreased outbound calling efficacy to consumers.
GoDaddy ‘s decision to restructure, affecting about 814 workers, just shows that the Covid-19 problems hardly spares anybody – not even those who have seen success in their overall sector.
However, the company provides new positions to over 40 per cent of those 814 workers impacted by the restructuring.
“Our facilities in Austin bear specific costs and challenges, so we’re going to close both locations in Austin,” GoDaddy CEO Aman Bhutani said in a letter to employees as he revealed that 331 members of the GoDaddy Social sales team in Austin would be leaving the company.
Nevertheless, Bhutani emphasized that “the core of the GoDaddy company is still strong and as we continue to expand we will look to bring team members back.”
The company’s management now expects approximately one per cent of sales in the second quarter to surpass previously released guidance of $790 million.