Global data center provider CyrusOne announced its decision to cut 55 jobs, representing 12 percent of the company’s workforce.
“This step to right-size the organization, while not an easy decision, will result in enhanced margins and higher profitability over time, strengthening our position in the current environment as we maintain our focus on driving organic growth,” said Gary Wojtaszek, president and chief executive officer of CyrusOne.
The company provides mission-critical data center facilities that protect and ensure the continued operation of IT infrastructure for approximately 1,000 customers, including more than 200 Fortune 1000 companies.
“In recognition of the continued moderation in demand from hyperscale customers, a trend we first identified in late 2018, we believe it is appropriate to reduce our cost structure to more closely align the business with current market conditions,” Gary Wojtaszek said.
Tesh Durvasula, president of Europe at CyrusOne, will leave the US-based data center company to pursue other interests, effective March 1, 2020, and remain in a consulting role through June 30, 2020. Matt Pullen, managing director of Europe, will assume his responsibilities.
CyrusOne said annualized cash compensation and benefit savings as a result of these events is $10.7 million, and the company expects to incur an estimated charge of approximately $5.9 million with respect to such matters in the first quarter of 2020.