San Antonio-based Rackspace announces layoffs amid multimillion-dollar restructuring plan
One of San Antonio's most prominent tech firms is slashing 10 percent of its workforce.
July 22, 2021Updated: July 22, 2021 10:19 a.m.
Several Rackers interruption for luncheon astatine their desks connected Wednesday, March 6, 2019.
Marvin Pfeiffer /Rackspace, 1 of San Antonio's astir salient tech companies, is prepping for a circular of layoffs amid a multimillion-dollar restructuring plan.
According to documents filed with the Securities and Exchange Commission, Rackspace is "committed to an interior restructuring plan, which volition thrust a alteration successful the types of and determination of definite positions and is expected to effect successful the termination of astir 10 percent of the Company’s workforce."
The institution adds that up to 85 percent of those layoffs "will beryllium backfilled successful the Company’s offshore work centers."
Reductions volition instrumentality spot implicit the adjacent 12 months, according to the filing, and employees were notified of layoffs connected July 22. Rackspace's program is estimated to outgo the tech institution betwixt $70-$80 million, astir of which volition beryllium termination benefits.
The San Antonio Express-News was archetypal to report the news, and enactment of the company's 7,000 employees crossed the globe, a important information is located astatine its Windcrest headquarters.
“The initiatives announced contiguous volition alteration Rackspace Technology to instrumentality afloat vantage of existent marketplace trends, thrust important net leverage arsenic gross continues to grow, and vie adjacent much efficaciously with different unreality work providers," said CEO Kevin Jones successful a release. "In addition, we are much intimately aligning our Rackers with next-generation work offerings that connection much compelling maturation imaginable some for them and the company.”
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