Cloud storage giant Dropbox sacks 500 employees amid slowing growth

In January 2021, Dropbox had laid off 315 employees amid the Covid-19 pandemic

IANS New Delhi

Photo: Reuters

Listen to This Article

Cloud storage giant Dropbox announced on Thursday that it is laying off 16 per cent of its workforce, or about 500 employees, due to slowing growth.

Dropbox CEO Drew Houston said that he takes full ownership of this decision.

"If you've been impacted, you'll be sent a calendar invitation for a one-on-one with a leader on your team and a member of the People team to go through details of your departure, package, and to ask any questions you may have," he informed.

Houston said that while the business is profitable, "our growth has been slowing".

"Part of this is due to the natural maturation of our existing businesses, but more recently, headwinds from the economic downturn have put pressure on our customers and, in turn, on our business," he said.

As a result, some investments that used to deliver positive returns are no longer sustainable, the company informed.

Also Read

JSW Energy arm bags two battery energy storage system projects from SECI

Tesla Megapack to achieve sustainable energy future for Earth, says Musk

Application for visa renewal can be submitted through dropbox: US Embassy

Microsoft introduces next-gen hybrid cloud platform 'Azure Operator Nexus'

AWS upbeat on India, sees massive headroom for growth in cloud adoption

Shriram Finance consolidated net rises 18% to Rs 1,288 crore in Q4

PNB to infuse Rs 72.82 cr in its Bhutan subsidiary Druk via rights issue

Vice media cancels flagship show amid layoffs and company restructure

ACC net profit declines 41% to Rs 236 cr in January-March quarter

Hindustan Zinc turns into a net debt firm for first time in 20 years

In January 2021, Dropbox had laid off 315 employees amid the Covid-19 pandemic.

The impacted employees will be eligible for 16 weeks of pay, with one additional week of pay for each completed year of tenure at Dropbox.

"All impacted employees will receive their Q2 equity vest. All employees will be eligible for up to six months of COBRA in the US, and similar equivalents where applicable internationally, as well as Modern Health support," said the company.

The impacted employees will be eligible to keep company devices (phones, tablets, laptops, and peripherals) for personal use.

"These transitions are never easy, but I'm determined to ensure that Dropbox is at the forefront of the AI era, just as we were at the forefront of the shift to mobile and the cloud. We'll need all hands on deck as machine intelligence gives us the tools to reimagine our existing businesses and invent new ones," the CEO said.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Apr 27 2023 | 10:55 PM IST

Explore News