Rackspace to lay off 4% of its global workforce
About 275 positions may be affected by the San Antonio tech firm's move
Texas-based tech company Rackspace (RXT) plans to lay off about 4% of its global workforce.
A company spokesperson told media on Monday that the firm informed its employees of the upcoming round of restructuring to be implemented this week, MySA reported.
The company did not put a specific number to the jobs being cut but some reports said about 275 positions could be affected.
"Like so many companies that are feeling the effects of the macroeconomic downturn, Rackspace is no exception," the company said in a statement. "During this uncertain time, it is important that we align our cost structure to the demands of the business."
The company says it will provide employees with severance and other resources to help employees with their "transition."
According to a report in March Rackspace have 6,800 employees in 23 countries, including 3,100 in North America. Rackspace, which provide public and private cloud services, moved into a new headquarters in San Antonio last year, coming off a history of net losses despite revenue growth, Express-News reported in February.
