The web’s largest content hosting company has seen its share of disruption and upheaval.
The latest round of layoffs at Hostgator comes at a time when it is facing pressure from competitors and the government over the costs of hosting.
Hostgators revenue dropped by nearly $1 billion in the fourth quarter, as it faced more scrutiny from the FBI and other government agencies over its privacy practices and its decision to block customers who accessed the company’s content.
Host Gator’s stock fell 4% in after-hours trading.
The company also has been facing pressure to slash costs as it struggles with a new wave of malware.
Last week, the company announced it would close its Torrent hosting platform.
HostGator was founded in 2004 and has a network of nearly 600,000 servers.
As of March 30, the number of servers was down to roughly 350,000, according to data from Web Host.
While Hostgations revenue dropped $1.2 billion, it posted revenue of $11.2 million and a net loss of $1 million.
Hosts business model is to offer content-rich, highly scalable, and scalable hosting solutions.
The web is an ever-growing platform, with more than 70% of all traffic to sites using its network.
Hosting companies have been increasingly competing with other hosting companies, and in April 2018, Hostgation was shut down by the US government after the FBI requested it to shut down Torrent, a Torrent client.
The FBI has been pressuring Hostgato to shut its TorTorrent services down.
Earlier this year, the US Department of Homeland Security said it would impose a temporary block on all Torrent services and other hosting services until a court ruling in a class-action lawsuit could be resolved.
The government said it wanted to force Hostgat to block Torrent because it believed that the company did not comply with the law.
Hostgate and Hostgantor did not immediately respond to requests for comment.
Hostgrill Hostgrills CEO and president Brian McWilliams said the company was not aware of any government demand to block users of Torrent.
“The company is in compliance with the laws and regulations in every jurisdiction in which it operates,” McWilliams told Bloomberg News.
The Torrent clients were used by more than 10 million people in the US, and McWilliams believes that about half of that traffic was hosted on the site.
“We do not believe Torrent traffic is the cause of our customer loss,” McWilliams said.
Hostgorilos revenues have also been declining, although the company said it had increased its revenue and was on track to reach $5 billion in 2017.
HostGrill said it has been hiring more people, including a new president, and would continue to make the transition to a new product in 2018.
“As a company we are focused on delivering a quality, scalable, open-source hosting solution that can help us deliver a better user experience and service to our customers,” Mc Williams said.
He declined to comment on Hostgrilling’s new CEO, who was not immediately available for comment on Monday.