Rackspace Lays Off 100 to ‘Meet Shifting Business’ Needs

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When Rackspace purchases Datapipe, it will have more than 6,500 employees worldwide.

Bonnie Arbittier / Rivard Report

Rackspace's headquarters are located in Windcrest, a suburb on San Antonio's Northeast side.

Managed cloud company Rackspace announced Tuesday it had laid off nearly 100 employees, mostly San Antonio-based Rackers. A little more than one year ago the company cut its total U.S. workforce by 6 percent, eliminating the jobs of about 200 people at its Windcrest headquarters.

"Rackspace operates in the fast-changing information technology industry, and we constantly evolve our workforce to meet shifting business requirements. Our business is growing in revenue and profit, and our headcount is the highest it has ever been," the statement from company spokesman Brandon Brunson read.

Headquartered in San Antonio, Rackspace employs 6,700 people worldwide. Of those, 2,927 work in San Antonio, Brunson said. The company has offices in six other U.S. cities and in eight other countries.

The company was founded in 1998 and went public in 2008.

In August 2016, Rackspace announced its acquisition by New York-based private equity firm Apollo Global Management, shifting the company from public to private. The February 2017 cuts were part of an effort to reduce spending by 7 percent companywide for the whole year.

Then last fall, the company agreed to acquire Datapipe, one of the world’s leading providers of managed cloud services, managed hosting, and colocation, making Rackspace the largest managed cloud player in the world.

Rackspace announced the appointment of technology industry veteran Joe Eazor as the new CEO of Rackspace in May, replacing Taylor Rhodes who resigned.

The same month, the company acquired TriCore Solutions, a leader in the management of enterprise applications, the largest acquisition in Rackspace’s history.

Tuesday's cuts were felt mostly in San Antonio, but also in other U.S. locations, according to Brunson, who said there are currently 200-plus job openings on the company website "in areas where we need more Rackers with certain skill sets."

The website currently lists 185 U.S.-based jobs at Rackspace, with 122 of those openings in Texas, and 70 in San Antonio.

 

This story was originally published on Feb. 14, 2018.

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