Endurance International Group, or EIG, has announced a further 90 job cuts at their Austin, Texas office. It will affect the support teams at Site5, Arvixe, Hostgator, A Small Orange and Hostnine.
The announcement came shortly after a similar announcement where EIG told its 440 Bluehost staff that they were shutting down their Orem, Utah headquarters. According to its website, EIG employs over 300 people at their Austin office, and as such these layoffs represent just under a third of the total staff.
According to Venturebeat the cuts will take place gradually between April and June 2017. Those losing their jobs will receive enhanced severance pay, but we are sure this will be of little comfort to those losing their jobs.
According to a statement issued by EIG, the goal is to shift their resources to a centralized support location "for the benefit of the business and our valued customers". They go on to say that it will also "enable greater efficiency across our family of Endurance brands".
The last point is quite interesting, as their 2016 Q3 earnings report released last November projected a loss of $70 million from over $1 billion of revenue.
The move by EIG will hopefully turn the fortunes of some of the web hosting brands around, as many are suffering with poor reputations following several years of worsening technical support, which saw at one point ticket responses to customer queries in excess of one week.
With their hope to centralize their support efforts, and with them ceasing offering India-based ticket support in favor of their US-based online chat and telephone support we will take great interest over the next year as to how they progress. Certainly, at present, they appear to still be struggling with live chat wait times of up to an hour.