In December 2022, a hosted Exchange ransomware assault that disrupted email service for some Rackspace customers caused the market valuation of the company to dip below $1 billion
San Antonio based computing business, Rackspace Technologies, is claming the worldwide economic crisis for its forthcoming round of layoffs. The company informed employees at its offices around the world this week that it will lay off around 4% of its workforce, a corporate representative revealed to MySA on Monday, March 27.
Rackspace declined to give an exact figure for the number of positions that will be eliminated, although Express-News claims that there could be as many as 275.
The announcement comes at a challenging moment for the business. In December 2022, a hosted Exchange ransomware assault that disrupted email service for some Rackspace customers caused the market valuation of the company to dip below $1 billion for the first time since about 2015.
Casey Shilling, chief marketing officer of the company shared “Like so many companies that are feeling the effects of the macroeconomic downturn, Rackspace is no exception. During this uncertain time, it is important that we align our cost structure to the demands of the business. This requires some elimination of roles across the company.”
According to Shilling, the business will offer severance and other resources to people who are let go.
3,100 of the 6,800 employees worldwide working for Rackspace in 23 different nations were based in North America as of March.
According to a February Express-News article, the provider of public and private cloud services, relocated into a new headquarters in San Antonio last year after experiencing a history of financial losses despite revenue growth.
Also read: Cybersecurity is no longer optional for companies
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