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Rackspace announces US layoffs just three months after $4.3bn buyout

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Annie Kelley
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The cloud computing firm has announced layoffs that will cut its US workforce by about 6%.

Three months after being taken private in a $4.3bn buyout, Rackspace has announced plans to lay off 6% of its US-based workforce.

Rackspace CEO Taylor Rhodes said in a blogpost the cuts will primarily be focused on the company s corporate administrative expenses and management layers.

The company s front-line support staff and product teams will be least impacted by the layoffs.

Rackspace did not reveal further details about where the layoffs will come from or the specific number of employees that would be affected, saying the job cuts will be in areas where the workforce has grown more rapidly than the revenue.

Rhodes said: The U.S. layoffs and proposed international reductions are personally painful, but they are necessary and manageable, adding that he is confident they can be accomplished without hurting customer service the company provides to its customers.

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Annie Kelley
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