Rackspace Technology is planning to lay off about 4 percent of its workforce – representing nearly 275 employees – due to tough business conditions.
Rackspace had about 700 employees in its head quarters in December, 2022. Its global employee base was about 6,800 in 23 countries, including 3,100 in North America, according to the recent US Securities and Exchange Commission filing.
“Like so many companies that are feeling the effects of the macroeconomic downturn, Rackspace is no exception,” Casey Shilling, chief marketing officer of Rackspace Technology, said.
“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.”
Rackspace Technology will provide severance and other resources to those employees who are laid off.
Rackspace Technology is targeting first quarter revenue of $752 – $762 million.
Rackspace Technology’s revenue increased 4 percent to $3.122 billion in 2022 thanks to customer acquisitions and growing customer spend in Multicloud Services and Apps & Cross Platform segments. Rackspace Technology reported net loss of $805 million in 2022 as compared to net loss of $218 million in 2021.
