Rackspace announces it has laid off 200 workers

Rackspace, the hosted personal cloud vendor, let go round 200 employees or three p.c of its worldwide workforce of 6,600 staff this week. The corporate says that it’s a part of a recalibration the place it’s looking for employees who’re higher suited to their present enterprise method.

A Rackspace spokesperson instructed TechCrunch that it’s “a secure and worthwhile firm.” In truth, it employed 1,500 staff in 2018 and presently has 200 job openings. “We proceed to put money into our enterprise primarily based on market alternative and our prospects’ wants – we take actions on an ongoing foundation in some areas the place we’re over-invested and rent in areas the place we’re underneath invested,” an organization spokesperson defined.

The corporate, which went public in 2008 and personal once more for $4.three billion in 2016, has struggled in a cloud market dominated by giants like Amazon, Microsoft and Google, however based on Synergy Analysis, a agency that retains shut watch on the cloud market, it is without doubt one of the high three firms within the Hosted Personal Cloud class.

It’s value noting that the highest firm on this class is IBM, and Rackspace may very well be goal for Large Blue if it wished to make use of its checkbook to get a lift in market share. IBM is in third or fourth place within the cloud infrastructure market, relying on whose numbers you have a look at, however it might transfer the needle a bit by shopping for an organization like Rackspace. Neither firm is suggesting this, nonetheless, and IBM purchased Crimson Hat on the finish of final yr for $34 billion, making it much less possible it will likely be in a spending temper this yr.

For now the layoffs seem like an organization tweaking its workforce to fulfill present market situations, however regardless of the cause, it’s by no means a contented day when folks lose their jobs.

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