Dropbox announces layoffs of 528 employees, or 20% of its workforce
Dropbox co-founder and CEO Drew Houston has announced plans to cut 528 employees, or roughly 20% of its global workforce.
An update from Drew | Dropbox Blog
Houston said that it is 'no longer sustainable' for Dropbox to maintain its current structure and investment levels while going through this transitional period in which its core file syncing and sharing service has matured while its information search tool,
The company said it had decided to cut staff to flatten the structure and streamline areas of overinvestment and underperformance, as it had been criticized for having an overly complex organizational structure and excessive management that was slowing operations down. The cuts will cost between $63 million and $68 million.
Those who retire will receive 16 weeks' salary (approximately four months' worth), plus one week's salary for each year they have been with the company, and will be given stock issuance rights in the fourth quarter of 2024. Employees who are enrolled in the bonus plan will receive a pro rata lump sum equivalent to the target bonus amount based on performance projections. The 'severance payment' will vary depending on the legal requirements and practices of the country or region where the business is located.
You may keep company equipment such as laptops, phones, tablets and peripherals for your personal use.
Houston concluded the announcement by saying, 'This is incredibly difficult and unwelcome news. To those of you who are leaving Dropbox, I am deeply grateful for all you have done for the company and our customers.'
Dropbox has struggled against rivals Google Drive and Box, and its most recent Q2 2024 earnings report showed that its year-over-year growth rate of 1.8% was its lowest ever.
Dropbox Announces Fiscal 2024 Second Quarter Results
(PDF file) https://investors.dropbox.com/static-files/df1fe33d-3995-4528-a9c2-38004195c6fc
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