--- title: "Layoffs of 15% to make way for AI! Rackspace signs a phased deployment agreement with AMD for 30 megawatts of computing power, pre-market surged over 25%" type: "News" locale: "en" url: "https://longbridge.com/en/news/289922591.md" description: "AMD has signed an agreement with Rackspace Technology to phase in the deployment of the first 30 megawatts of AI computing resources across its global data centers. This collaboration combines AMD Instinct GPUs with EPYC CPUs to accelerate the delivery of enterprise-level AI cloud architecture. As a result of this positive news, Rackspace's pre-market stock price surged over 25%" datetime: "2026-06-16T12:51:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289922591.md) - [en](https://longbridge.com/en/news/289922591.md) - [zh-HK](https://longbridge.com/zh-HK/news/289922591.md) --- # Layoffs of 15% to make way for AI! Rackspace signs a phased deployment agreement with AMD for 30 megawatts of computing power, pre-market surged over 25% Zhitong Finance APP noted that on Tuesday, AMD (AMD.US) signed an agreement with AI infrastructure solutions provider Rackspace Technology (RXT.US) to phase in the deployment of the first 30 megawatts (MW) of AMD AI computing resources. On Tuesday, pre-market trading saw Rackspace's stock price surge by about 27%, and as of the time of writing, it was up 21.39%, trading at $7.16. The deployment will begin at the end of 2026 and continue until 2028, covering Rackspace's global data centers. This agreement is the execution of the memorandum of understanding announced by the two companies last month. The two companies stated that after full deployment, these 30 MW of dedicated AMD computing resources will form a significant service capability to meet the needs of regulated enterprise workloads. This includes healthcare providers, who have shown early interest in accelerated computing for clinical AI and large-scale inference. This collaboration will integrate AMD Instinct graphics processors (GPUs, including MI355X, MI350P, and future follow-up solutions) with AMD EPYC (Xiaolong) CPUs into a unified enterprise-level AI cloud architecture. Both parties pointed out that this agreement will accelerate the delivery of the four integrated features announced with the memorandum of understanding: enterprise AI cloud, enterprise inference engine, inference as a service, and bare-metal AMD Instinct, thus providing a complete and controlled technology stack from bare-metal computing to fully managed inference. Dan McNamara, Senior Vice President and General Manager of AMD Computing and Enterprise AI, stated, "By combining industry-leading AMD AI computing solutions with Rackspace's controlled cloud operating model, we are helping regulated enterprises deploy high-performance AI infrastructure. At the same time, this provides the openness, scalability, and accountability needed to run AI at an enterprise scale." Both companies plan to invest sales and marketing resources to identify and connect with enterprise customers. **Rackspace Layoff Plan** In another statement, Rackspace announced that it would undergo a workforce restructuring, which is expected to result in a reduction of approximately 15% of its global workforce. The company stated that most affected employees were notified around June 10, and the departure plans for the remaining employees will be carried out over the next six months, depending on their positions and jurisdictions. Rackspace noted that the board's executive committee approved this workforce restructuring plan on June 10. The company stated that this adjustment is primarily due to its strategic decision to downplay certain traditional service delivery functions (mainly within the public cloud business unit) and to optimize regions in order to redeploy resources to the construction of its enterprise AI. Rackspace expects that this workforce restructuring will incur one-time costs of approximately $14 million to $19 million, most of which are expected to be incurred within 2026 Upon full implementation, the company expects to achieve annualized operating cost savings of approximately $75 million to $85 million compared to the current spending levels. The company stated that it plans to reinvest a significant portion of these expected savings into its highest growth areas of products and services, including cutting-edge engineering deployments, AI solution delivery, and enterprise AI infrastructure development. Rackspace added that as it continues to assess opportunities to optimize operations, the company may take additional measures in the process of advancing its strategic transformation ### Related Stocks - [RXT.US](https://longbridge.com/en/quote/RXT.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [AMDD.US](https://longbridge.com/en/quote/AMDD.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [AMDG.US](https://longbridge.com/en/quote/AMDG.US.md) - [DAMD.US](https://longbridge.com/en/quote/DAMD.US.md) - [AMDY.US](https://longbridge.com/en/quote/AMDY.US.md) - [AMDW.US](https://longbridge.com/en/quote/AMDW.US.md) ## Related News & Research - [Nvidia or AMD: Top Investor Says Only One AI Stock Is Worth Buying](https://longbridge.com/en/news/289369149.md) - [BUZZ-Rackspace up, cuts workforce and signs data center deal with AMD](https://longbridge.com/en/news/289967854.md) - [Alchemi Wealth LLC Makes New Investment in Advanced Micro Devices, Inc. $AMD](https://longbridge.com/en/news/289657754.md) - [GIGABYTE Advances Motherboard Performance with AI-driven Technologies](https://longbridge.com/en/news/288994230.md) - [Zinnia Wealth Advisory LLC Buys Shares of 3,283 Advanced Micro Devices, Inc. $AMD](https://longbridge.com/en/news/289772638.md)