Richard Yoo, who founded and helped build the web hosting company that became one of the largest technology companies in San Antonio, he believes he is watching her collapse.
The reputation of the company now known as Rackspace Technology, he said, is "eroding rapidly" after years of changing business plans, executive reshuffles, financial losses, staff cuts and, finally, the Dec. 2 ransomware attack that left tens of thousands behind. customers without access to their email, contact and calendar data.
"This is the beginning of the end," Yoo said last week. “It's already a medium-sized business in San Antonio. It is not a company that is on a growth trajectory. They are on death row. Soon it will be gone.”
Rackspace's mounting financial woes (it has posted a steady string of quarterly losses and its stock has fallen 80 percent since last year) have been blamed on replacing tech-oriented leadership with board members and managers "who have nothing to do with the product".
He also said there is "no culture" at the company after it laid off hundreds of local employees while expanding globally, and mocked the company's lack of respect for its employees and identity.