Rackspace Technology layoffs, on the record
Every job cut, severance charge and restructuring Rackspace Technology reported in its annual reports, 2023 to 2025, quoted from the filings. Headcount went from 5,800 to approximately 5,000.
Headcount, as reported
| Annual report | Employees | As of |
|---|---|---|
| 10-K for 2023 | 5,800 | As of December 31, 2023 |
| 10-K for 2024 | approximately 5,100 | December 31, 2024 |
| 10-K for 2025 | approximately 5,000 | December 31, 2025 |
Job cuts, severance and restructuring
Our summaryCompany committed to the July 2021 Restructuring Plan to change the type and location of certain positions, expected to terminate about 10% of the workforce.
Word for word“On July 21, 2021, we committed to the July 2021 Restructuring Plan to drive a change in the type and location of certain positions that was expected to result in the termination of approximately 10% of our workforce.” 10-K for 2023
Our summaryCompany reported employee related and other costs of the July 2021 Restructuring Plan accounted for as exit and disposal costs.
Word for word“The 2021 charges included $25.4 million for employee related costs and other costs accounted for as exit and disposal costs under ASC 420 as described in Item 8 of Part II, Financial Statements and Supplementary Data - Note 11, "July 2021 Restructuring Plan."” 10-K for 2023
Our summaryCompany reported higher severance expense in 2023 within personnel costs, partly offset by lower headcount.
Word for word“Personnel costs declined between periods due to lower headcount and a decrease in non-equity incentive compensation, partially offset by higher severance expense in 2023.” 10-K for 2023
Our summaryCompany reported restructuring and transformation expenses, including associated severance, for 2023 in its non-GAAP reconciliation.
Word for word“Restructuring and transformation expenses (c) 99.0 70.8 Hosted Exchange incident expenses, net of proceeds received or expected to be received under our insurance coverage 5.9 (4.8) Impairment of goodwill 534.5 708.8 UK office closure (d) — 12.1 Impairment of assets, net 146.1 52.2 Amortization of intangible assets (e) 166.8 161.0 Non-GAAP Operating Profit $ 363.8 $ 183.4” 10-K for 2023
Our summaryCompany exited a UK office in the second quarter of 2023 before the lease end date and recorded a closure expense.
Word for word“(d) Expense recognized related to the closure of a UK office that we exited in the second quarter of 2023 prior to the lease end date.” 10-K for 2023
Our summaryCompany reported a $58 million decrease in payroll and payroll taxes in 2023 due to lower levels of severance payouts compared with 2022.
Word for word“The increase in operating cash was primarily driven by $209 million of cash proceeds related to the initial sale of a portion of our receivables upon execution of the Receivables Purchase Facility in September 2023 and a $58 million decrease in payroll and payroll taxes due to lower levels of severance payouts in 2023 compared to 2022.” 10-K for 2023
Our summaryCompany reported a reduction in headcount that drove lower personnel costs in cost of revenue compared with the prior year.
Word for word“The decrease in cost of revenue was primarily due to an increase in the useful life of certain customer gear assets, as discussed in Item 8 of Part II, Financial Statements and Supplementary Data - Note 1, "Company Overview, Basis of Presentation, and Summary of Significant Accounting Policies", which resulted in a decline in depreciation expense between periods.” 10-K for 2024
Our summaryCompany reported personnel costs fell on lower salaries from lower headcount and reduced severance expense.
Word for word“In addition, personnel costs decreased due to a reduction in salaries driven by lower headcount and decreases in severance and commissions expense, partially offset by an increase in non-equity incentive compensation.” 10-K for 2024
Our summaryCompany recorded restructuring and transformation expenses, which include severance, facility closure costs and lease termination expenses tied to business transformation.
Word for word“Includes consulting and advisory fees related to business transformation and optimization activities, as well as associated severance, certain facility closure costs, and lease termination expenses.” 10-K for 2024
Our summaryCompany closed a UK office it exited in the second quarter of 2023 before the lease end date.
Word for word“Expense recognized related to the closure of a UK office that we exited in the second quarter of 2023 prior to the lease end date.” 10-K for 2024
Our summaryCompany reported the July 2021 Restructuring Plan, an internal restructuring plan, with charges recorded in 2022.
Word for word“This amount also includes total charges of $5.2 million for the year ended December 31, 2022 related to the July 2021 Restructuring Plan which are not accounted for as exit and disposal costs under ASC 420, including one-time offshore build out costs.” 10-K for 2024
Our summaryCompany reported lower payroll and payroll tax payments in 2023 because of lower severance payouts compared with 2022.
Word for word“Net cash provided by operating activities for 2023 increased $128 million, or 52%, from 2022.” 10-K for 2024
Our summaryThe company reported lower cost of revenue partly because of reduced headcount and lower severance expense compared with the prior period.
Word for word“Also contributing to the overall decrease in cost of revenue was a decline in personnel costs, driven by a reduction in headcount and severance expense between periods.” 10-K for 2025
Our summaryThe company said selling, general and administrative personnel costs fell on lower headcount, partly offset by higher severance tied to the departure of its former chief executive officer.
Word for word“The decrease in personnel costs was largely due to a decline in headcount between periods and a reduction in share-based compensation and non-equity incentive compensation, partially offset by an increase in severance expense driven by the departure of our former chief executive officer.” 10-K for 2025
| Fiscal year ended | Restructuring charges |
|---|---|
| 2018-12-31 | $2.3 million |
| 2019-12-31 | $10.3 million |
| 2020-12-31 | $15.3 million |
Rackspace Technology filed 1 restructuring notice (Form 8-K, Item 2.05) since 2016. This page shows what the company reported to the SEC, not news reports or state layoff notices.
Read from Rackspace Technology’s annual reports (10-K for 2025, 10-K for 2024, 10-K for 2023) and the financial data it files with the SEC, as of 2026-03-06. Every quotation is word for word from the filing linked beside it; how these pages are built and checked. The full record is in its company data sheet.