Dropbox is laying off 20% of its staff
Dropbox is laying off 20% of its staff as the cloud storage company undergoes what CEO Drew Houston calls a "transitional period."
In a letter to staff, Houston said that the reduction in headcount would impact 528 people. The goal, he added, was to make cuts in areas where Dropbox has “over-invested” while designing a “flatter, more efficient” team structure.
Just looking at myself here but who uses dropbox this day? Used to use it, but was many years ago now.
Very true. There was another one also...evergreen or something like that.
No idea what utility they have today.
most of these things eventually get obsolete because of tech growth and changes
hahaha, I've never used it before or maybe I did and didn't know 😂
“As CEO, I take full responsibility for this decision and the circumstances that led to it, and I’m truly sorry to those impacted by this change,” he wrote. “This market is moving fast and investors are pouring hundreds of millions of dollars into this space. This both validates the opportunity we’ve been pursuing and underscores the need for even more urgency, even more aggressive investment, and decisive action.”
According to a filing with the SEC, Dropbox estimates it’ll lay out total cash expenditures of $63 million to $68 million on the layoffs, primarily in the form of severance and benefits, and recognize $47 million to $52 million of incremental expense. Most of the payouts will occur in Q4 2024, with the remainder to be recognized in H1 2025.
Affected employees will receive severance, equity, and transition payments, as well as certain healthcare and benefits and job placement services.
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