Rackspace Cuts Jobs for 3rd Straight Year

But the company continues to hire, with 200 open positions.

Edward Gately, Senior News Editor

March 1, 2019

2 Min Read
Job Personnel Cuts

For the third February in a row, Rackspace announced layoffs, this time about 200 workers — despite being a “stable, profitable” company.

Rackspace on Thursday confirmed it has eliminated about 3 percent of its global workforce of more than 6,600 workers. Last February, it cut close to 100 workers, and in February 2017 it cut nearly 300.

The managed cloud services provider wouldn’t say what types of jobs were eliminated and where those jobs are located. The company’s headquarters is in San Antonio, Texas.

According to Rackspace officials, the company “continues” to be stable and profitable.

You can keep up with the Channel Partners telecom and IT layoff tracker to see which companies are cutting jobs and how the channel is impacted.

“As a normal course of business and like many major tech companies in our industry, we are constantly rebalancing our workforce as we evolve and grow our business,” the company said. “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 overinvested and hire in areas where we are underinvested.”

In the meantime, the company continues to hire. It has nearly 200 open positions on its external jobs site. Also, it hired more than 1,500 “Rackers” in 2018.

“We have an exciting opportunity to accelerate the value of the cloud for our customers and are uniquely positioned to help them during every phase of their digital transformation journey,” the company said.

Rackspace joins AT&T, IBM, Verizon and VMware in confirming layoffs this year. 

Apollo Global Management took Rackspace private in a $4.3 billion deal in 2016, and Joe Eazor replaced Taylor Rhodes as CEO in summer 2017.

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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