US-based Cloud Computing Firm Rackspace To Lay Off 4% Of Workforce

US-based cloud computing company Rackspace Technology has said it would lay off about 4 per cent of its workforce globally amid tough macroeconomic conditions.

According to San Antonio Express-News, the layoffs will cut nearly 275 employees across the company's global workforce.

However, it is not confirmed how many employees would be let go from the company's San Antonio headquarters or what their roles would be.

According to the recent US Securities and Exchange Commission filing, Rackspace had about 700 local employees in December, and its global employment was about 6,800 in 23 countries, including 3,100 in North America.

"Like so many companies that are feeling the effects of the macroeconomic downturn, Rackspace is no exception," Casey Shilling, chief marketing officer, was quoted as saying.

"During this uncertain time, it is important that we align our cost structure to the demands of the business. This requires some elimination of roles across the company," she added.

The company said that it will provide severance and other resources to those employees who are laid off, the report mentioned.

Meanwhile, Swiss technology firm Logitech has laid off 300 employees amid the challenging global macroeconomic environment.

According to Logitech President and CEO Bracken Darrell, the slump in the business was due to a challenging global broader macroeconomic environment and "lower enterprise and consumer spending".

Logitech had 8,200 employees as of March 2022.

--IANS

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