In Latest Round of Layoffs, Rackspace Lets Go 3 Percent of Workforce

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Scott Ball / Rivard Report

Rackspace has subleased more than 77,000 square feet of its Windcrest headquarters to TaskUs.

Rackspace said Thursday that it had laid off about 3 percent of its workforce, which works out to roughly 200 employees.

This is the third wave of layoffs for the managed-cloud services provider in the past three years. Rackspace laid off 100 employees in February 2018, and 200 employees in February 2017. The 2017 cuts came after the company was acquired by New York-based private equity firm Apollo Global Management in 2016, and the company attempted to reduce spending by 7 percent for the year. Those layoffs occurred in areas where the workforce grew faster than revenue, a spokeswoman for the company said at the time.

Rackspace officials said that they are “constantly rebalancing” their workforce as a normal course of business.

“We continue to invest in our business based on market opportunity and our customers’ needs – we take actions on an ongoing basis in some areas where we are over-invested and hire in areas where we are under invested,” Rackspace said in a statement.

The company employs more than 6,500 people around the world, and hired 1,500 employees in 2018 alone, Rackspace officials said. One of San Antonio’s largest employers with roughly 3,000 working at its Windcrest headquarters, the company did not say how many of the job cuts were local.

Rackspace has offices in four continents and business customers in more than 150 countries.

The company had 194 open positions advertised on its job site as of publication time, and officials said they will continue to hire new employees.

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