Rackspace finance chief names amid executive shake-up

SAN ANTONIO — Rackspace Technology Inc. has named Bobby Molu as its next chief financial officer.

Maletira has held the roles of Chief Financial Officer and Chief Executive Officer.

“As we continue our transformation of Rackspace Technology, I’m excited to welcome Bobby to the company,” Maletira said in a statement. “Bobby’s global experience and career spanning 20 years in numerous financial leadership roles in the technology industry, combined with his strong operational background, will be key to our execution of our strategy and new operating model.”

On ExpressNews.com: Rackspace names a new CEO, effective immediately.The move comes amid a corporate restructuring

Molu’s experience in the tech industry includes New York-based Mastercard, where he oversaw markets in Europe, Asia Pacific, Middle East, Africa, Latin America and the Caribbean. Previously, he served as Chief Financial Officer of Mastercard Asia Pacific. Prior to joining Mastercard, Molu spent 15 years at Hewlett-Packard in various financial roles. Prior to HP, he held finance positions with IBM Global Services.

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He will start at Rackspace on January 16th.

Maletira was named top Rackspace in September to advance a plan to restructure the company’s business into separate business units that offer private and public clouds. He said this month that Rackspace was making “good progress” on a restructuring it rolled out on Jan. 1.

A public cloud is a subscription service shared with customers over the internet. A private cloud is a service controlled by a business or organization.

In its third-quarter earnings report this month, Rackspace said it was making progress toward its goal as it increased revenue for the 12th straight quarter, even as its net loss widened. Both measures beat the company’s guidance and Wall Street’s expectations.

On ExpressNews.com: ‘Confidence in our strategy’: Rackspace CEO optimistic about company restructuring success

It also forecast fourth-quarter revenue of $772 million to $782 million, roughly in line with analysts’ expectations.

Still, its reported loss is the latest in a long string of losses; its last profitable quarter was in early 2019.

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Maletira also announced the hiring of Shashank Samant as lead director of its Board of Directors. Samant, who has been a member of the company’s board of directors since October 2021, will also act as an advisor to the company’s largest shareholder, Apollo Global Management.

Jones, who had held the top job at Rackspace since April 2019, transferred to Apollo.

Founded in 1998, Rackspace first hit the public markets a decade later as a web hosting company before losing most of its market value to heavyweight Amazon.

In 2016, Apollo took the company private for $4.3 billion. Rackspace changed its business model and started working with tech giants to help its customers migrate data to private and public clouds. Between 2017 and 2019, Rackspace acquired four businesses for $1.7 billion. Apollo’s second IPO in 2020 brought it back to the stock market.

Since then, Rackspace’s performance as a public company has struggled.

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In addition to the restructuring and executive shakeup, Rackspace announced last month that it was leaving its longtime headquarters in a former mall in Windcrest and downsizing for smaller digs.

On ExpressNews.com: Rackspace to leave longtime Windcrest headquarters for new North San Antonio office space

It is selling its 1.2 million-square-foot building and other properties in Windcrest and downsizing its office space in nearby Stone Oak to 75,000 to 90,000 square feet. The move comes against the backdrop of a pandemic-era shift to hybrid and remote work that has reduced the need for office space for many companies.

As Rackspace’s newest member, Molu said in a statement Thursday that he is “excited to join a distinguished leader in multi-cloud solutions and to work with Amar and the leadership team to accelerate his journey to profitable revenue growth.”

The company is “ready to execute on its forward-looking strategy and capture the multi-cloud market opportunity,” he said.

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