Rackspace Partners with AMD, Announces Workforce Reduction
Rackspace Technology (NASDAQ: RXT) has announced an expansion of its partnership with Advanced Micro Devices (NASDAQ: AMD) to deploy 30 MW of compute capacity for enterprise customers in regulated sectors like healthcare, starting in late 2026 and continuing through 2028. The partnership aims to enhance Rackspace’s service offerings in light of growing demand for secure cloud solutions.
In conjunction with this development, Rackspace is reducing its workforce by 15%, which is expected to save between $75 million and $85 million annually after severance payments. This move comes as the company aims to refocus on AI-related opportunities amid a challenging market environment, where it recently reported only 2% revenue growth.
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