Cloud computing company Rackspace begins trading at the Nasdaq following its initial public offering, Wednesday, Aug. 5, 2020, in New York's Times Squ

San Antonio-based Rackspace cuts 10 percent of workforce

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2021-07-22 16:00:05

Cloud computing company Rackspace begins trading at the Nasdaq following its initial public offering, Wednesday, Aug. 5, 2020, in New York's Times Square. (AP Photo/Mark Lennihan)

Rackspace Technology said this morning it’s slashing 10 percent of its workforce as the cloud-computing company restructures its business.

The company has about 7,000 employees worldwide, with a significant portion at its Windcrest headquarters. It’s unclear how many local employees will be out of work.

Rackspace has “committed to an internal restructuring plan, which will drive a change in the types of and location of certain positions and is expected to result in the termination of approximately 10 percent of the company’s workforce,” the filing said. Rackspace “anticipates that approximately 85 percent of these roles will be backfilled in the Company’s offshore service centers.”

According to the filing, company officials notified laid-off employees today and they will leave the company over the next 12 months.

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