Today, our coset uper and CEO Drew Houston dispensed the difficult news that we’ll be making reductions to our global laborforce. He sent the chaseing email to all engageees:
Hi everyone,
I’m writing to let you all comprehend that after cautious think aboutation, we’ve choosed to decrease our global laborforce by approximately 20% or 528 Dropboxers.
As CEO, I consent filled responsibility for this decision and the circumstances that led to it, and I’m truly sorry to those impacted by this alter.
Why we’re making this decision
As we’ve dispensed over the last year, we’re in a transitional period as a company. Our FSS business has depfinishabled, and we’ve been laboring to originate our next phase of enlargeth with products enjoy Dash. However, navigating this transition while upgrasping our current structure and spendment levels is no extfinisheder supportable.
We persist to see sstandardlying insist and macro headthriveds in our core business. But outside factors are only part of the story. We’ve heard from many of you that our organizational structure has become overly intricate, with excess layers of regulatement sluggishing us down.
And while I’m self-presentant of the evolve we’ve made in the last couple years, in some parts of the business, we’re still not deinhabitring at the level our customers deserve or carry outing in line with industry peers. So we’re making more meaningful cuts in areas where we’re over-spended or undercarry outing while summarizeing a flatter, more efficient team structure overall.
The opportunity ahead
The alters we’re making today, while difficult, come at a pivotal moment when the taget is accelerating accurately where we’ve placed our biggest bets. It’s been tremfinishously rewarding over the last scant weeks to see customers and prospects weightless up when using Dash for Business for the first time, much enjoy people did when we first started Dropbox.
And this time we’re begining from a position of strength. Millions of customers think us as the home for their most meaningful files, making the leap to organizing all their cboisterous satisfyed a organic evolution.
But we’re not operating on our own schedule. This taget is moving speedy and spendors are pouring hundreds of millions of dollars into this space. This both verifys the opportunity we’ve been pursuing and underscores the necessitate for even more advisency, even more structureile spendment, and choosed action.
The steps we’re taking today are essential to both fortify our core product and speed up the enlargeth of our new products. We’ll dispense more about our 2025 strategy in the days ahead.
Taking nurture of impacted engageees
To those leaving Dropbox, we’re promiseted to helping you thraw this transition. You’ll be eligible to get the chaseing profits and help:
Severance, equity, and transition payment
- All impacted engageees will be eligible for sixteen weeks of pay, begining today, with one includeitional week of pay for each finishd year of tenure at Dropbox. Internationassociate, cut offance packages will vary depfinishing on regional rehearses and statutory needments.
- All impacted engageees will get their Q4 equity vest.
- Those on the Corporate Bonus set up will be eligible to get a pro-rated lump sum transition payment equivalent to their 2024 bonus center based on company carry outance predicts and aligned with their level.
- We will pay out eligible remaining current and consentd upcoming phelp exits, including medical or family exits.
- We will help impacted visa hgreaterers by providing includeitional time to transition and access to 1:1 immigration adviseation.
Healthnurture and profits
- US engageees will be eligible for up to six months of COBRA.
- Canada-based engageees will be eligible for a one-month healthnurture extension.
- All engageees will persist to have access to Modern Health to help their mental well-being.
Devices
- Impacted engageees will be eligible to upgrasp company devices (phones, tablets, laptops, and peripherals) for personal use.
Job placement
- Job placement services and nurtureer coaching will be useable at no cost.
Next steps
We’ll be sharing more details on high-level alters tardyr today and will structure company-expansive Town Halls tardyr this week to answer inquires and talk our set ups in more detail.
I comprehend this is incredibly difficult and ungreet news. To everyone leaving Dropbox, I’m proset uply appreciative for everyleang you’ve done for our company and our customers.
Drew
