A cloud-computing services company backed by Apollo Global Management Inc., Rackspace Technology, said it had approved a plan to cut its global workforce by 15%.

The company also signed a definitive agreement with Advanced Micro Devices (AMD) to deploy an initial 30 megawatts of AMD-based compute capacity across its global data centers from late 2026 through 2028.

The deployment is for AI infrastructure and includes AMD Instinct MI355X and MI350P graphics processing units, alongside EPYC central processing units, for regulated enterprise workloads.

Healthcare is among the initial target sectors, although individual deployments and some commercial terms still need to be agreed.

Rackspace’s US$1.6 billion first-lien term loan due in 2028 rose by about 5 cents on the dollar on June 16, to between 93.5 cents and 95.5 cents, after the disclosure.

Rackspace shares rose nearly 10%, while AMD shares fell about 4%.

The loan had rebounded from distressed levels, climbing from about 29 cents in mid-February.

🔗 Source: Bloomberg