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CyrusOne lays off 55 employees as part of cost reduction initiative

CyrusOne Inc. said Jan. 13 it will cut its workforce by 55 employees, with immediate effect.

The staff reduction, which represents about 12% of the data center real estate investment trust's workforce, "will result in enhanced margins and higher profitability over time," said CyrusOne President and CEO Gary Wojtaszek. Severance pay and customary transition assistance will be provided to the affected employees.

Tesh Durvasula will also step down from his role as president of Europe to explore other interests, effective March 1, and will be replaced by Matt Pullen, who serves as managing director of Europe.

Durvasula will stay with the company in a consulting role through June 30.

The REIT said the events will lead to annualized cash compensation and benefits savings of about $10.7 million, and it expects to incur an estimated charge of roughly $5.9 million related to these matters in the first quarter.