Rackspace Hosting, which was acquired three months ago by a New York private equity firm, will cut six percent of its U.S. workforce, the company said Tuesday.
The layoffs will affect at least 275 employees of its more than 4,600 U.S. employees, and will also entail “somewhat smaller reductions” in Rackspace offices in other countries, CEO Taylor Rhodes said in a blog post.
The San Antonio cloud computing company was purchased by Apollo Global Management LLC for $4.3 billion. The deal, announced in August, was completed in November.
Rhodes said the layoffs were “personally painful, but they are necessary and manageable.” He said the company is cutting jobs primarily in its corporate administration and management teams, “while striving to create the least impact to our... support and product teams.”
The company has about 500 employees in Austin. Rackspace did not say how many of the job cuts might come in Austin.
Rackspace said in 2014 it would move its Austin employees into the former Dillard’s women’s store at the old Highland Mall site. It is unclear if the company is moving forward with that plan.
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