Dropbox cuts its workforce by 20 percent in latest round of layoffs

“We’re making much important cuts successful areas wherever we’re over-invested oregon underperforming portion designing a flatter, much businesslike squad operation overall,” writes Dropbox CEO Drew Houston successful a blog station titled An update from Drew. At the aforesaid time, Houston mentions that the marketplace is moving towards wherever the institution placed its “biggest bets,” which includes Dropbox’s Dash AI hunt product.

For its second-quarter net this twelvemonth successful August, Dropbox reported an increase of 63,000 paid users 4th implicit quarter, which is airy compared to its full 18 million-plus idiosyncratic base. As reported by TechCrunch, Q2 was Dropbox’s slowest maturation successful institution history, and its shares mislaid much than 20 percent of their worth twelvemonth to day successful August.

Houston says Dropbox volition accidental much astir its 2025 strategy to turn its halfway concern and velocity up caller products successful the coming days. Affected employees volition get sixteen weeks of severance pay, equity, bonus program lump sums, payouts of approved leave, and migration consultation for those connected enactment visas. Dropbox says astir of the payouts volition instrumentality spot successful fiscal Q4 2024.