Rackspace is cuting 6% of its workforce


Via a blog post by CEO Taylor Rhodes, Texas-based cloud computing company Rackspace announced that it is cutting about 6% of its workforce in areas that have seen slowed growth in recent years.

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Rhodes says the cuts will primarily be focused on the company’s corporate administrative expenses and management, and that the company’s “front-line” support staff and product teams will be least impacted by the layoffs. Rackspace did not provide additional details about where the cuts will come from, saying only they are in areas “where the workforce has grown more rapidly than the revenue.”

Fast-growing sectors of the company’s business – notably its Managed Security, Hosted OpenStack and VMware clouds, and Managed Amazon Web Services and Microsoft Azure public cloud products – will not be cut.

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