Rackspace to lay off 250+ workers nationwide

Unknown how many San Antonio workers impacted


SAN ANTONIO – San Antonio-based Rackspace Hosting Inc. announced Tuesday that it is laying off six percent of its workforce nationwide.

The cuts are expected to impact around 275 people of its 4,600 employees. It is unknown how many positions in San Antonio are being cut.

In the U.S. alone, the company has locations in San Antonio, Austin, Dallas/Fort Worth, Chicago, Blackburg and Ashburn, Virginia.

In a blog post to employees, CEO Taylor Rhodes said, “We have targeted these cuts primarily toward our corporate administrative expenses and management layers, while striving to create the least impact to our frontline fanatical support and product teams.”  

Additional coverage:

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Rhodes said the layoffs in America are focused on areas where “our workforce has grown more rapidly than our revenue.”

Last year, it was announced that Rackspace was sold to a private investor.

The company entered into an agreement to be acquired by New York private equity firm Apollo Global Management, LLC for $4.3 billion.

Click here to read the blog post in its entirety.

City Manager Sculley Statement on Rackspace Announcement