While Dropbox made teleworking permanent like a large number of tech companies a few months ago, the company just announced in a blog post that it will be parting with 11% of its employees. At the end of the day on January 13, 2021, 315 people were notified that their adventure in Dropbox was about to end. A difficult but necessary decision, said Drew Houston, CEO of Dropbox.
Dropbox will lay off 315 employees
The tension and sadness can be felt in Drew Houston’s message to his teams yesterday, January 13th. He wrote: “This is difficult news and I want to give you better news. We made the difficult decision to reduce the size of our global workforce by 315 people, or about 11% of the teams. This reduction, while painful, is necessary to implement the new strategies we have shared over the past few months. “
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Drew Houston had promised his employees that Dropbox could secure them a job until 2020. Now that we are in 2021, that’s a different story. According to the CEO, it is imperative that Dropbox make strategic changes to become a healthier, more successful company. It was the toughest decision for Drew Houston, who has headed Dropbox for 14 years.
He went on to say, “Our Virtual First policy means we need fewer resources to support our work environment. We are therefore reducing this investment and redeploying these resources to complete our ambitious product roadmap. These changes allow us to offer a more efficient and flexible offer. We need to change the experience and invest in new products. “
Thanks are also given to COO Olivia Nottebohm
One of the most important departures is certainly the separation from Olivia Nottebohm, the COO of Dropbox, who will leave the company on February 5th. Drew Houston said of him, “Olivia has played an important role in our success and I am very grateful for her contribution. Olivia took a critical look at our business and unified our sales, marketing and support teams to create a more coherent customer experience. She has had a positive impact on the business and we wish her the best of luck on her next adventure. “
The move had a direct impact on the company’s shares, which fell 4.5%. Dropbox isn’t the only tech company to have parted ways with some of its employees since the Covid-19 crisis. In May, Airbnb announced the layoff of a quarter of its employees. In July 2020, the Wall Street Journal estimated that 70,000 technicians had lost their jobs due to the crisis.