Rackspace CEO admits personally painful workforce reduction to seize opportunities
Managed cloud provider Rackspace has revealed it is culling six percent of its US workforce, as well as small reductions in its international operations.
The news of the headcount reduction was made by CEO Taylor Rhodes in a blog post and he said the job losses are personally painful , but promised the departing Rackers fair severance packages.
In August Rackspace revealed it was going private, after private equity firm Apollo Global Management agreed a $4.3 billion £3.26bn deal to take control of the cloud hosting firm.
We are proposing somewhat smaller reductions in our offices in other countries, through consultative processes governed by local laws.
The US layoffs and proposed international reductions are personally painful, but they are necessary and manageable, he added.