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Dropbox is place off 20 % of its workforce as the cloud ship’s company undergoes what CEO Drew Houston calls a “ transitional stop . ”
In aletterto staff , Houston said that the reduction in headcount would affect 528 people . The destination , he summate , was to make slice in surface area where Dropbox has “ over - invested ” while designing a “ flatter , more effective ” team social system .
“ As chief executive officer , 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 place is go fast and investor are pouring century of millions of buck into this space . This both validates the opportunity we ’ve been pursuing and underscores the need for even more importunity , even more strong-growing investment , and decisive action . ”
consort to afilingwith the SEC , Dropbox estimates it ’ll lay out total Johnny Cash expenditure of $ 63 million to $ 68 million on the layoffs , primarily in the manakin of rift and benefits , and recognize $ 47 million to $ 52 million of incremental disbursement . Most of the payouts will occur in Q4 2024 , with the remainder to be recognize in H1 2025 .
Affected employee will welcome breach , fairness , and transition payments , as well as certain health care benefits and line of work placement services .
Dropbox has shinny to develop in late months , losing market contribution to rivals , include Box and Google Drive . In its most late financial quarter , the ship’s company append only 63,000 newfangled users — a fraction of its some 18 million user radix — while revenue growth slew to the low single digits .
In Q2 , Dropbox saw the lowest twenty-five percent for growth in its history : 1.9 % year - over - year increment to $ 634.5 million . As of August , the company ’s share had lose more than 20 % of their value year to appointment .
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“ We continue to see softening demand and macro headwinds in our core business , ” Houston publish . “ While I ’m majestic of the procession we ’ve made in the last duo age , in some share of the business , we ’re still not cede at the layer our customers deserve or performing in demarcation with diligence peers . ”
The layoff make out a year after Dropbox let go of roughly 500 employees — and as the troupe increasingly invests in AI technologies . Dropbox latterly expanded its AI - power impertinent organization and search tool , Dropbox Dash , with enterprise - focused features , let in data point governance controls .
In his letter , Houston articulate that Dropbox plans to portion out more details on high - level change and its 2025 strategy in the coming twenty-four hours .
