Rackspace Gets a Roommate: IT Firm TaskUs to Bring 1,200 Employees to the ‘Castle’

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Scott Ball / Rivard Report

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

More than 1,200 workers are moving into the “Castle,” Rackspace’s Windcrest headquarters, but they aren’t Rackers.

The managed cloud service company has subleased more than 77,000 square feet of the facility off Interstate 35 to TaskUs, a Los Angeles-based information technology service company. It’s the first time Rackspace has shared the building with another tenant since the company took over the derelict former Windsor Park Mall in 2012. Rackspace fills about half of the former shopping mall’s 1.2 million square feet.

“We are excited to create space for another technology company that is as committed to San Antonio as we are, especially one whose drive to give back to the community is as strong as ours,” Chief People Officer Laura Sue D’Annunzio said in a blog post. “We have similar values, and together I think we’ll have an even greater impact on the technical community and the area surrounding the Castle.”

TaskUs will occupy space Rackspace was no longer using. The area used to be a Mervyn’s store before the mall shuttered.

In March 2018, TaskUs announced its intention to bring 1,000 jobs to New Braunfels. In 2017, it underwent a $3.4 million expansion of its San Antonio call center. The company leases about 28,000 square feet in the Finesilver Building near downtown.

TaskUs comprises more than 16,000 employees worldwide and about 2,500 in San Antonio.

The sublease follows three rounds of Rackspace layoffs in the past three years, along with high turnover, especially among its executives. Rackspace has had three different CEOs since private equity firm Apollo Global Management purchased it in 2016.

Rackspace last month transitioned as many as 125 employees to India-based contractor Tech Mahindra as it announced a partnership with the firm to help Rackspace enter into a new market.

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