City Manager Sculley Statement on Rackspace Announcement

SAN ANTONIO (Feb. 7, 2017) Rackspace Hosting Inc. announced today that it is cutting its
U.S. workforce by 6 percent in areas of its business where the workforce has grown more
rapidly than revenues, including about 6 percent of employees at its San Antonio headquarters.
The City of San Antonio is committed to assisting Rackspace with its Community Link program
to retain the departing employees and keep their talents here in San Antonio, City Manager
Sheryl Sculley said. One of the lasting legacies of great companies like Rackspace is they
bring top-notch talent to our community. The goal and challenge for us is to keep those bright
minds in our city.
In addition, the City of San Antonio has partnered with Tech Bloc and helped fund the creation
of a Chief Talent Recruitment Officer (CTRO) to secure a single point-of-contact who will
efficiently connect tech talent to tech opportunities in San Antonio.
Even as it undertakes this reduction, Rackspace plans to invest in its faster-growing lines of
business. The companys leaders and owners, led by Apollo Global Management, expect that
within a few years Rackspace will be significantly larger in revenue, profit and headcount.
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