Employees knew this was coming. Sad day for a (once) great company.
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I’ve talked to many. over 500 layoffs in public and private cloud.
The stock increase ironically masks the company risk profile to juniors because it is pointed to by CEO as a signal that the narrative is working (this is true short term). Good for trading and short-timers.
But unless quick conversion to revenue comes there will be a layoff every quarter to meet EBITDA. Keep in mind Rackspace is partially owned by Apollo and has almost $3B in debt. Company has a final shot at winning in AI after losing as public cloud managed services, VMware, open stack, etc. Alot of people there with 15+ years. And clear from recent hires that the company is remaking into a Cognizant shop / philosophy. Sticking around without significant stock upside is what they call asymmetric risk to one’s career.
It’s a very bad moment.
A lot of teams have been dissolved or are now without manager.
@df rumor was 70-80% of public cloud
@de How bad was it? I do not see any actual numbers being reported.
It’s a bloodbath
I have someone in my family that works for this company... looks like American and Canadian teams were let go but Indian team survived for the most part except a few layoffs. The new norm is offshoring. Business got to survive but cannot afford high salaries so there comes moving jobs to cheaper countries who run the business while locals get laid off. Oh well