Dropbox has announced a significant workforce reduction of 20 percent, resulting in 528 employees losing their jobs, the company revealed on Wednesday. This decision, communicated through a blog post by CEO and cofounder Drew Houston, marks a challenging phase for the San Francisco-based online file storage and sharing platform.
Houston acknowledged his responsibility for the layoffs, expressing regret for those affected. He described the company as being in a “transitional period” aimed at fostering future growth following the maturation of its existing products. “Navigating this transition while maintaining our current structure and investment levels is no longer sustainable,” he noted.
Affected employees will receive a severance package that includes 16 weeks of pay, with an additional week for each year of service, as well as equity vestments for Q4 2024. Other benefits include a pro-rated lump sum transition payment for those on the corporate bonus plan, compensation for current and upcoming paid leaves, support for international visa holders, and six months of COBRA healthcare.