Rackspace Technology, the San Antonio-based tech company, is blaming economic downturn for its upcoming round of layoffs to its global workforce. A company spokesperson confirmed to MySA on Monday, March 27, that the company told employees at its offices across the globe this week that it will layoff about 4% of its workforce.
The company declined to provide a specific number of jobs that will be cut, but the Express-News reports that the number is near 275 positions. The Rackspace spokesperson also didn’t say how many people at the San Antonio office would be affected. The company had around 700 employees at its San Antonio headquarters, according to a recent filing with the Securities Exchange Commission.
“Like so many companies that are feeling the effects of the macroeconomic downturn, Rackspace is no exception,” the company said in a statement. “During this uncertain time, it is important that we align our cost structure to the demands of the business.”