Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
The company says 110 employees will be affected by the layoffs in the fourth quarter. Akamai, whose network speeds delivery of web content to retail sites, says it has not changed its business outlook and will use the savings to invest in growth areas.
Akamai Technologies Inc., whose content delivery network accelerates the delivery of content to retail and other web sites, has announced plans to lay off 110 employees, 7% of its workforce, in the fourth quarter.
The layoffs are part of a cost-cutting plan that will free up funds to invest in such areas as content delivery, application acceleration and advertising, the company says.
"We have not changed our business outlook," said chief financial officer J.D. Sherman. "However, we want to ensure that we can keep investing for growth even in the current economic climate."
Among the top online retailers that use Akamai’s global server network to speed up delivery of content to web users is Amazon.com, No. 1 in the Internet Retailer Top 500 Guide, No. 2 Staples and No. 3 Office Depot.