Rackspace Layoffs 2018: Workforce Streamlining to Cut About 100 Jobs in San Antonio, TX

Rackspace Layoffs 2018

Rackspace Hosting, Inc., a managed cloud computing company based in San Antonio, Texas, has initiated job cuts. The Rackspace layoffs in 2018 will impact fewer than 100 of its 6,700 employees, although the exact number has not yet been disclosed by the company.

These Texas layoffs are part of Rackspace’s restructuring plans. “Rackspace operates in the fast-changing information technology industry, and we constantly evolve our workforce to meet shifting business requirements,” said the company.

The statement continued, “We are hiring in areas where we need more Rackers with certain skill sets, and we periodically trim in areas where other skill sets are in lower demand.”

The company is spread out globally, with offices in Australia, Germany, India, Mexico, the Netherlands, Switzerland, Singapore, Hong Kong, the United Kingdom, and the United States. The company has data centers in Australia, Germany, Hong Kong, the United Kingdom, and the United States.


The company became public in 2008, and in 2016 it was purchased and taken private by Apollo Global Management LLC (NYSE:APO) for $4.3 billion.

Layoffs at Rackspace in 2017

A round of Rackspace layoffs in February 2017 affected about 250 employees. These job cuts were part of the company’s cost-cutting measures. Taylor Rhodes, the CEO at the time, said in a blog post that the layoffs would cut the U.S. workforce by about six percent. Rhodes explained that the job losses would be in areas where the company’s workforce had grown faster than the revenue.

Moreover, Rackspace’s European spokesperson said that the company had filed documents with the U.S. Securities and Exchange Commission (SEC), indicating that the Rackspace would cut seven percent of its global spending in 2017.

Executive Restructuring

Recently, Rackspace’s C-suite has entirely turned over. In the past nine months, Rackspace has replaced four of its top executives.

  • Chief Executive Officer Taylor Rhodes left on May 16, 2017 and he was replaced by Joe Eazor in June.
  • Chief Financial Officer Karl Pichler left on May 23, 2017. Louis Alterman replaced him in July of that year.
  • Chief Operating Officer Mark Roenigk left on June 28, 2017. In the same month, David Meredith’s was appointed as President of Private Cloud and Managed Hosting, and he took over some of Roenigk’s responsibilities.
  • Chief Technology Officer John Engates was replaced by Datapipe, Inc.’s Chief Technology and Security Officer Joel Friedman in November 2017. Engates was then given the title “Chief Evangelist” and he continued working at Rackspace until February 2, 2018.



San Antonio’s Rackspace lays off workers,” Saint Antonio Express-News, February 13, 2018.

Enterprise-Grade Infrastructure, Managed By Data Center Specialists,” Rackspace Hosting, Inc., last accessed February 14, 2018.

Rackspace lays off 250 US staff with more job cuts pegged worldwide,” Ars Technica, February 8, 2017.


Categories: Job Cuts, News