CyrusOne cuts 12 percent of workforce in savings drive

Dallas-based colo expects job cuts to provide $11 million in savings

Global data centre provider CyrusOne is sacking 55 employees as it seeks to save costs in response to oversupply and slowing demand in the US market.

The Dallas-based company announced the cuts in a statement on Monday and expects the move to provide nearly $11m in savings.

Affected employees will receive severance as well as customary transition assistance.

CyrusOne CEO Gary Wojtaszek commented: “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.

“We continually evaluate our expense structure and have been very proactive in identifying opportunities to generate efficiencies, which this action further supports.”

CyrusOne’s president of Europe Tesh Durvasula will also leave the company by March 2020, remaining in a consulting role until June 30. Matt Pullen, managing director of Europe, will take on the departing president’s role.

“I greatly appreciate Tesh’s leadership and dedication over the last seven years and his tremendous contribution to the growth and success of CyrusOne,” said Wojtaszek.

“Since he joined, the company’s revenue has nearly quintupled, we have successfully expanded internationally, and we are now the third-largest data center provider in the world.

“He has been a great partner and friend, and I wish him the best in his future endeavors. I am excited that Matt, one of the original Zenium principals, will now be leading our continuing European expansion, leveraging his extensive experience in the region.”

Last year a Bloomberg report claimed CyrusOne was considering selling its business and was evaluating three potential bidders, a report the colocation company swiftly denied.

“As you may be aware, several media outlets have reported and some of you have speculated that we are in discussions with various third-parties regarding a potential sale of the company,” CEO Gary Wojtaszek told the Dallas Business Journal in October.

“We’re not currently pursuing a sale of the company.”