Heaptalk, Jakarta — US-based cloud company Dropbox announced to slash its global workforce by 528 people, approximately 20% of the total team. This measure is expected to align with its long-term growth initiatives and profitability objectives more.
“As we have shared over the last year, we are in a transitional period as a company. Our FSS business has matured, and we have been working to build our next phase of growth with products like Dash. However, navigating this transition while maintaining our current structure and investment is no longer sustainable.” Dropbox CEO Drew Houston conveyed.
According to the company, the affected employees will be eligible to receive multiple supports, spanning:
- All impacted employees will be eligible for sixteen weeks of pay, with one additional week for each completed year of tenure at Dropbox. Internationally, severance packages will vary depending on regional practices and statutory requirements.
- The company will support impacted visa holders by providing additional time to transition and access to 1:1 immigration consultation.
- All employees will continue to have access to Modern Health to support their mental well-being.
- Impacted employees will be eligible to keep company devices (phones, tablets, laptops, and peripherals) for personal use.
- Job placement services and career coaching will be available at no cost.
Dropbox previously announced its Q2 revenue of US$634.5 million, an increase of 1.9% from last year. Total ARR was US$2.573 billion, an increase of 2.9% from last year. On a constant currency basis, YoY growth would have been 2.2%. Total ARR increased by US$17.3 million QoQ.
GAAP net income was $110.5 million, compared to $43.2 million for the same period last year, which included expenses related to the workforce reduction in the second quarter of 2023. Non-GAAP net income was $194.1 million, compared to $174.0 million for the same period last year.
“As CEO, I take full responsibility for this decision and the circumstances that led to it, and I am truly sorry to those impacted by this change. I know this is incredibly difficult and unwelcome news. I am deeply grateful to everyone leaving Dropbox for everything you have done for our company and our customers,” The CEO said.