Dropbox has announced in an SEC filing that it’s going to reduce its global workforce by approximately 11% which works out to 315 jobs being axed. CEO Drew Houston said that the decision was painful but that it was necessary to “create a healthy and thriving business for the future.”
With Dropbox moving to a Virtual First policy it doesn’t need to invest in as many resources to support its in-office environment. Houston highlighted that the firm promised to keep people on during 2020 to see them through the rough year. It has kept that promise but going forward the CEO said the firm needs to prepare for its next stage of growth.
Houston said he takes full responsibility for laying-off the 315 employees and that it’s one of the hardest decisions he has had to make in his 14 years as CEO of Dropbox. He reassured those being laid-off that their redundancy is not a reflection on them.
Depending on their location, employees affected by the changes will be eligible for a variety of severance, equity, bonus payments, and healthcare arrangements. They’ll also have the option to keep any company devices such as phones, tablets, laptops, and peripherals, and they will be offered free job placement services to help them seek out new employment.
In the filing, the firm also announced that Chief Operating Officer Olivia Nottebohm would be stepping down from her position on February 5th. According to the filing, she played an important role in setting the firm up “for success in 2021.”