Dropbox to Cut 16% of Global Workforce Says CEO Letter
Cloud storage service Dropbox announced on Thursday it will be cutting 16% of its global workforce, resulting in the loss of around 500 jobs.
CEO Drew Houston sent an email to employees today revealing the cuts, which are becoming a trend in the tech industry amidst an economy that has yet to recover after the global pandemic.
“I’m writing to share that I’ve made the difficult decision to reduce our global workforce by about 16%, or 500 Dropboxers,” wrote Houston.
“First and foremost, I want to recognize the impact this decision has on Dropboxers who are affected and their families, and I take full ownership of this decision and the path that led us here,” he explained.
Houston acknowledged the challenges faced by Dropbox as growth has slowed due to both the maturation of existing businesses and recent economic downturns. He emphasized that the arrival of the AI era has opened up new opportunities but also increased competition, necessitating a change in the company’s focus and skill set requirements.
“The opportunity in front of us is greater than ever, but so is our need to act with urgency to seize it,” said Houston. He highlighted the company’s commitment to staying at the forefront of technological advancements, such as AI and early-stage product development.
The CEO outlined the benefits and support offered to impacted employees, including severance and equity packages, healthcare coverage, company device retention, and job placement services.
Houston also detailed organizational changes, such as the consolidation of the Core and Document Workflows businesses and a realignment of business teams.
“We’ll focus today on supporting impacted employees and saying goodbye to fellow Dropboxers. To those of you who are departing: thank you for everything you’ve done for Dropbox in your time here,” concluded Houston.
Dropbox has had over 1 billion mobile app downloads and the service is used by 600,000 teams globally it says.
Back in December 2009, late Apple co-founder Steve Jobs wanted to buy Dropbox and offered Houston a ‘nine-digit’ offer. Houston told Jobs he wasn’t interested in selling as he wanted to grow the company. Jobs in response told the Dropbox CEO his company was “a feature, not a product”. The story goes Jobs wanted a follow-up meeting with Houston but the latter declined.