Rackspace Holdings Inc. Outside San Antonio Rumored To Be Cutting Up To 300 Jobs

SAN ANTONIO, TX — Rackspace Holdings Inc., owners of a namesake managed cloud computing company just outside San Antonio that is one of the biggest area employers, is trimming its workforce by as many as 300 workers, according to a published report.

Word spread quickly since the news first appeared on the local Reddit portal of a potential 300 job losses, 200 of those in San Antonio. Rackspace Hosting Inc. is located in Windcrest, a suburb of San Antonio.

The San Antonio Express-News said one Rackspace manager confirmed the first round of layoffs began on Tuesday, but declined further comment pending official notification from the company. Another source within the company reportedly told the newspaper the cuts would primarily impact middle managers, with as many as 300 getting pink slips.

Rackspace spokesman Brandon Brunson declined to comment when reached by the news outlet.

Last year, the company closed its San Francisco office. Once publicly traded on the New York Stock Exchange, the company was taken private in November by investment firm Apollo Global Management. The acquiring company is known as a turnaround specialist, helping bring firms to profitability or expand on their revenue output.

Apollo Global Management previously bought the Hostess Brands and managed to take it out of bankruptcy reorganization proceedings, helping it emerge as a now public company with current market valuation at just under $2 billion.

Speculation has emerged if a similar tactic is underfoot with Rackspace, which employs more than 3,740 workers in San Antonio and nearly 5,000 nationwide. Globally, the company has more than 6,200 workers.

>>> Read the full story at San Antonio Express-News

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