Dallas data center company CyrusOne is paying off 55 employees as part of a plan to increase profitability. This move came after a ransomware attack affecting six customers.
CyrusOne’s one of the largest data center providers is cutting 55 jobs, according to the company’s announcement on Monday. These job cuts represent about 12% of its workforce.
“In recognition of the continued moderation in demand from hyperscale customers, a trend we first identified in late 2018, we believe it is appropriate to reduce our cost structure to more closely align the business with current market conditions,”
the company’s CEO, Gary Wojtaszek, said in a statement. According to Gary Wojtaszek, CyrusOne will reduce its annual expenses by $10.7 million with these job cuts. The company’s estimated first-quarter earnings would result in $5.9 million.
To strengthen the company’s position
“This step to right-size the organization, while not an easy decision, will result in enhanced margins and higher profitability over time, strengthening our position in the current environment as we maintain our focus on driving organic growth,” he continued.
Moreover, this announcement also includes a job leaving. CyrusOne’s European president, Tesh Durvasula, will leave the company on March 1. He replaced Matt Pullen as managing director of Europe. CyrusOne has been targeted by a ransomware attack affecting six customers primarily hosted at its New York data center. The cost-cutting move can be related to this attack.
CyrusOne that moved its headquarter to Dallas one year ago, had $812 million in revenue in 2018. The company had 448 employees that year.