{"id":42308,"date":"2021-07-26T10:27:00","date_gmt":"2021-07-26T10:27:00","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=879262ccc67c69011d041f0f9716d273"},"modified":"2021-07-26T10:27:00","modified_gmt":"2021-07-26T10:27:00","slug":"rackspace-to-lay-off-10-of-workforce","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/rackspace-to-lay-off-10-of-workforce\/","title":{"rendered":"Rackspace to lay off 10% of workforce"},"content":{"rendered":"


\n Sabina Weston<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
26 Jul, 2021<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

Rackspace Technology<\/a>\u00a0plans to lay off\u00a010% of its workforce, with 85% of these roles\u00a0set to be replaced through its offshore service centres.<\/p>\n

That’s according to a\u00a0regulatory filing<\/a>\u00a0submitted by the\u00a0cloud computing<\/a>\u00a0services provider last week, informing the Securities and Exchange Commission, the US market regulator, of its plans.<\/p>\n

<\/p>\n

\nThe document states that on 21 July, Rackspace \u201ccommitted to an internal restructuring plan, which will drive a change in the types of and location of certain positions and is expected to result in the termination of approximately 10% of the Company\u2019s workforce\u201d.<\/p>\n

\u201cThe Company anticipates that approximately 85% of these roles will be backfilled in the Company\u2019s offshore service centres,\u201d it added. The affected employees were notified of the decision on the same day, and are expected to leave Rackspace over the next 12 months. The restructuring means that the company will spend between $70 and $80 million (\u00a350-58 million) over the next 12-24 months on \u201cseverance payments, healthcare benefits and other exit costs\u201d.<\/p>\n

Rackspace will instead focus on \u201cexpanding its internal training programme to further develop expertise in cloud services\u201d, such as cloud, data, and cloud native software engineering.<\/p>\n

In\u00a0another regulatory filing<\/a>, the San Antonio, Texas-based cloud computing company also stated that it\u2019s planning to invest between $65 and $70 million (\u00a347-50 million) in expanding its offerings in areas including \u201ccloud migration<\/a>, Elastic Engineering, cloud native application development, data\/artificial intelligence<\/a>\/machine learning<\/a>\u00a0and\u00a0security<\/a>\u00a0services\u201d.<\/p>\n

The investments are expected to deliver the company \u201can estimated $95-$100 million of gross cost savings\u201d.<\/p>\n

Commenting on the decision, Rackspace\u00a0CEO<\/a>\u00a0Kevin Jones said that the initiatives will allow the company \u201cto take full advantage of current market trends, drive significant earnings leverage as revenue continues to grow, and compete even more effectively with other cloud service providers\u201d.\u00a0<\/p>\n

\u201cIn addition, we are more closely aligning our Rackers with next-generation service offerings that offer more compelling growth potential both for them and the company,\u201d he added.<\/p>\n

Besides its offices in Texas, New Jersey, California, Virginia in the US, Rackspace also has two facilities in Melbourne and Sydney in Australia.\u00a0IT Pro<\/em>\u00a0reached out to find out which out of these offices will be affected by the job cuts but the company has yet to respond.\u00a0 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Sabina Weston<\/p>\n

26 Jul, 2021 <\/p>\n

Rackspace Technology\u00a0plans to lay off\u00a010% of its workforce, with 85% of these roles\u00a0set to be replaced through its offshore service centres.
\nThat’s according to a\u00a0regulatory filing\u00a0submitted by…<\/p>\n","protected":false},"author":627,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-42308","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/627"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=42308"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42308\/revisions"}],"predecessor-version":[{"id":42309,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42308\/revisions\/42309"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=42308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=42308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=42308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}