Dropbox CEO Drew Houston. ((PC- Getty Images via AFP/Matt Winkelmeyer)
Dropbox, the online backup and storage service company, on January 13 announced it was cutting its global workforce by about 11 percent, owing to the financial crisis posed by the Covid-19 pandemic.
The company said that the new move will affect 315 people, who will be notified by the end of the business day, the firm said in an 8K filing.
"The steps we’re taking today are painful but necessary,” Dropbox CEO Drew Houston said in an employee memo. "Last spring I made a commitment to all of you to preserve job security through 2020, and it was important to me that we honored that promise. But looking ahead at 2021 and beyond, it’s clear that we need to make changes in order to create a healthy and thriving business for the future," Houston said.
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Dropbox said the move will help the firm focus on its top priorities for the year, including evolving the core Dropbox experience, investing in new products, and driving operational excellence.
Earlier in October, Dropbox shifted to a standard remote work policy which will be in place even when the Covid-19 pandemic ends. Employees seeking the need to meet or work together in person may work from "Dropbox Studios" in San Francisco, Seattle, Austin and Dublin when it’s safe to do so, CNBC quoted Dropbox as saying.
“Our recent decisions regarding our new leadership structure and remote work policy have set us on the right path, and now we need to make sure our teams and investments also line up. For example, our Virtual First policy means we require fewer resources to support our in-office environment, so we’re scaling back that investment and redeploying those resources to drive our ambitious product roadmap,” Houston said.
Among other details, Dropbox announced chief operating officer Olivia Nottebohm will leave the company on February 5.