Dropbox is shedding 528 staff in a transfer that may cut back its world workforce by 20 p.c, CEO Drew Houston announced immediately.
Houston wrote that Dropbox’s core file sync and sharing “enterprise has matured, and we have been working to construct our subsequent section of progress with merchandise like Sprint,” an “AI-powered universal search” product focused to enterprise clients. The corporate’s “present construction and funding ranges” are “not sustainable,” in response to Houston.
“We proceed to see softening demand and macro headwinds in our core enterprise,” Houston wrote. “However exterior components are solely a part of the story. We have heard from lots of you that our organizational construction has change into overly advanced, with extra layers of administration slowing us down.”
Dropbox beforehand lower 500 staff in an April 2023 round of layoffs. On the time, Houston mentioned that Dropbox’s enterprise was worthwhile however progress was slowing.
At this time, Houston mentioned that Dropbox is “nonetheless not delivering on the stage our clients deserve or performing in keeping with trade friends. So we’re making extra important cuts in areas the place we’re over-invested or underperforming whereas designing a flatter, extra environment friendly group construction total.”
In a Securities and Exchange Commission filing, Dropbox mentioned it expects to “make complete money expenditures of roughly $63 million to $68 million in reference to the discount in drive, primarily consisting of severance funds, worker advantages and associated prices.” Laid-off staff are eligible for 16 weeks of pay, plus one further week of pay for every year of tenure, Houston wrote. He additionally mentioned the laid-off staff “will obtain their This fall fairness vest” and can be eligible for a pro-rated fee equal to their 2024 bonus goal.
