Dropbox is laying off 20% of its staff

1 week ago

Top cloud storage patient Dropbox has confirmed that it will beryllium laying disconnected 1 successful 5 workers arsenic portion of a broader cost-cutting measurement to tackle an evolving landscape.

The astir 20% simplification successful headcount, aliases 528 employees, will return spot arsenic portion of what CEO Drew Houston described arsenic a “transitional period.” The institution besides terminated 500 contracts successful 2023, and a further 300 successful 2021, arsenic nan tech assemblage grappled pinch a reliable economy.

In a blog post entitled "An update from Drew", Houston described nan challenges of “softening request and macro headwinds” affecting its halfway business arsenic good arsenic complaints from wrong that nan institution has go excessively “complex.”

Dropbox layoffs

It’s unclear really nan layoffs will impact different types of workers, but Houston said, “excess layers of guidance [are] slowing [the company] down.”

“And while I'm proud of nan advancement we’ve made successful nan past mates years, successful immoderate parts of nan business, we’re still not delivering astatine nan level our customers merit aliases performing successful statement pinch manufacture peers," he added.

Moving forward, Houston said Dropbox’s scheme is to make “more important cuts” successful parts of nan business that person either received excessively overmuch finance aliases are not performing arsenic good arsenic nan institution had hoped.

A abstracted SEC filing revealed nan institution expects to incur betwixt $63 and $68 cardinal successful costs relating to nan layoffs, including severance and different benefits.

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Houston committed to supporting workers pinch 16 weeks of pay, including 1 further week of salary for each completed twelvemonth of tenure astatine Dropbox, healthcare support, nan anticipation of keeping company-issued devices, and more.

Further specifications astir nan company’s strategy are group to beryllium discussed successful upcoming Town Halls and different meetings, but it’s apt that further investments will beryllium fixed to artificial intelligence.

Houston summarized pinch a hopeful message: “The changes we're making today, while difficult, travel astatine a pivotal infinitesimal erstwhile nan marketplace is accelerating precisely wherever we've placed our biggest bets.”