Drew Houston, co-founder of Dropbox Inc., is waiting for Dropbox (DBX) to be listed for the company’s initial public offering on the Nasdaq Market Site in New York, USA, March 23, 2018.
Lucas Jackson | Reuters
Dropbox is cutting its global workforce by about 11%, the company said in an 8K filing released Wednesday. Dropbox stock fell more than 3.5% in the morning.
The move will affect 315 people, who will be notified at the end of the working day.
“The steps we are taking today are painful, but necessary,” Drew Houston, Dropbox CEO, said in an employee memo Wednesday. Dropbox is committed to maintaining job security through 2020, but Houston said looking ahead to this year, “it is clear we need to make changes to create a healthy and thriving business for the future.”
The company said job cuts will help it focus on its top priorities for the year, including enhancing Dropbox’s core experience, investing in new products, and driving operational excellence.
Dropbox transitioned to a standard remote working policy in October, which will remain in effect even after the end of the Covid-19 pandemic. For employees who need to meet in person or work together, the company said it will open “Dropbox Studios” in San Francisco, Seattle, Austin and Dublin when safe.
“Our recent decisions regarding our new leadership structure and remote working policy have put us on the right track, and now we need to make sure our teams and investments are aligned too. For example, our Virtual First policy means that We need fewer resources to support our in-office environment, so we’re lowering that investment and re-using those resources to drive our ambitious product roadmap, ”said Houston.
Dropbox also announced that Chief Operating Officer Olivia Nottebohm will be leaving the company on Feb. 5.
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