Rackspace Technology, a San Antonio-based cloud computing company, is reportedly planning to lay off 140 employees, or about 2% of its workforce. The news has not been officially announced by the company, but has been shared by affected employees on LinkedIn.
According to the LinkedIn posts, the layoffs will affect employees across all levels and functions and will be concentrated in the company’s sales, marketing, and support teams. This is the second set of layoffs in 2023 at Rackspace.
The layoffs come at a time when the cloud computing industry is undergoing rapid change. Amazon Web Services and Microsoft Azure are the two dominant players in the market, and they are constantly expanding their offerings and capabilities. Rackspace is facing increasing pressure to compete with these rivals, and the layoffs are a sign that the company is struggling to keep up.
Rackspace is not the only cloud computing company that has announced layoffs in recent months. In January, IBM announced that it would lay off 3,900 employees, or about 2% of its workforce. And in February, Oracle announced that it would lay off 1,000 employees, or about 1% of its workforce.
The layoffs in the cloud computing industry are a sign of the increasing competitive pressures in the market. As the market consolidates, the big players are becoming more dominant, and smaller players are struggling to keep up. This is likely to lead to more layoffs in the cloud computing industry in the coming months.
The layoffs at Rackspace are a blow to the company and its employees. However, they are also a sign of the times. The tech industry is not immune to the economic challenges that are facing other industries. And as the tech industry becomes more competitive, it is likely that we will see more layoffs in the future.
What does this mean for the affected employees?
The layoffs at Rackspace are a difficult time for the affected employees. They are facing the prospect of losing their jobs and finding new employment in a competitive market. However, there are a few things that they can do to make the transition easier.
First, they should start networking with people in their field. This will help them stay connected and learn about new opportunities. Second, they should update their resume and start applying for jobs. Third, they should take advantage of any severance packages or outplacement assistance that Rackspace is offering.
The layoffs at Rackspace are a setback, but they are not the end of the world. The affected employees can take steps to make the transition easier and find new jobs.