Dropbox lays off 20% of staff, cutting more than 500 jobs

Dropbox is laying disconnected 20% of its workforce, eliminating a full of 528 jobs, the bundle institution said Wednesday.

In a memo to staff, CEO Drew Houston told employees the institution is successful a “transitional period” arsenic they enactment to “build our adjacent signifier of growth.”

“While I’m arrogant of the advancement we’ve made successful the past mates years, successful immoderate parts of the business, we’re inactive not delivering astatine the level our customers merit oregon performing successful enactment with manufacture peers,” Houston wrote. “So we’re making much important cuts successful areas wherever we’re over-invested oregon underperforming portion designing a flatter, much businesslike squad operation overall.”

The institution cut 500 roles successful a erstwhile circular of layoffs successful April 2023.

Employees who suffer their jobs successful the latest cuts volition person 16 weeks of wage with an further week for each twelvemonth they spent with the company.

Houston said helium would beryllium holding respective municipality hallway meetings to sermon the substance and the company’s aboriginal plans, including however its concern successful artificial quality relates to its file-sharing business.

“I cognize this is incredibly hard and unwelcome news,” helium wrote. “To everyone leaving Dropbox, I’m profoundly grateful for everything you’ve done for our institution and our customers.”

Dropbox stock has fallen 9% successful the twelvemonth to date, according to Market Watch.

The layoffs are the latest successful an ongoing inclination successful tech since 2020. The manufacture astatine ample has steadily contracted implicit the past respective years aft a pandemic-fueled hiring spree, with hundreds of thousands of jobs being cut.