City Scrambling to Deal With First True Challenge in Growing Tech Sector

SAN ANTONIO, TX - For the last five years, San Antonio's tech economy has moved in one direction--up.  But now that the city is facing its first tech downturn, in the form of significant layoffs at Rackspace Hosting, Inc, 1200 WOAI reports that City officials are scrambling to keep tech strong.

Mayor Ivy Taylor and City Manager Sheryl Sculley say, in connection with the tech industry assocation Tech Bloc, the city will employ a new Chief Talent Recruitment Officer, to be the 'single point of contact' to efficiently connect tech talent to tech opportunities in San Antonio.

The Rackspace layoffs, which affect 6% of the company's global operations, or about 275 people in the headquarters at the former Windsor Park Mall in Windcrest, were not unexpected, after the firm was acquired by a private industry investor last year.

Sculley says she is confident that with Rackspace investing in its 'faster growing lines of business,' the company will be 'significantly larger in revenue, profit, and headcount' within a few years.

“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," Sculley said.

Rackspace is generally credited with leading the tech boom which has transformed the city's economy, made San Antonio one of the leading destinations in the world for college educated millennials, and enabled the creation of world class developments like the Pearl. 

Tech employs tens of thousands of people in San Antonio, at salaries in excess of $60,000, well above the city's average pay.

Sculley says the City is also committed to assisting Rackspace with its Community Link program to retain the departing employees and keep their talents in San Antonio.

WOAI PHOTO


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