Dropbox Inc. co-founder Drew Houston is waiting for Dropbox (DBX) to be listed for the company’s initial public offering (IPO) on the Nasdaq Market website in New York, USA, March 23, 2018.
Lucas Jackson | Reuters
Dropbox is reducing its global workforce by about 11%, the company said in an 8K repository released Wednesday. Dropbox stock fell by more than 3.5% in the morning.
The move will affect 315 people, who will be notified by the end of the working day.
“The steps we are taking today are painful but necessary,” Dropbox CEO Drew Houston said in a note to employees on Wednesday. Dropbox is committed to maintaining job security until 2020, but Houston said that, following this year, “it’s clear we need to make changes to create a healthy and thriving business for the future.”
The company said the job cuts will help it focus on its top priorities for the year, which include developing the core Dropbox experience, investing in new products and boosting operational excellence.
Dropbox in October switched to a standard remote work policy, which will be in place even after the Covid-19 pandemic ends. For employees who need to meet or work together in person, the company said it will open “Dropbox Studios” in San Francisco, Seattle, Austin and Dublin when it is safe to do so.
“Our recent decisions on our new leadership structure and distance work policy have put us on the right track and now we need to make sure our teams and investments align. For example, our Virtual First policy means we need fewer resources to support our office environment, so we reduce that investment and redistribute those resources to drive our ambitious product roadmap, ”Houston said.
Dropbox also announced that Chief Operating Officer Olivia Nottebohm will leave the company on February 5th.
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