Dropbox Inc. co-founder Drew Houston is waiting for Dropbox (DBX) to be listed on the Nasdaq Market Site in New York, USA on March 23, 2018 for the initial public offering (IPO).
Lucas Jackson | Reuters
Dropbox is reducing its global workforce by about 11%, the company said in an 8K submission released Wednesday. Dropbox’s share fell more than 3.5% that morning.
The move will affect 315 people, who will be notified at the end of the working day.
“The steps we are taking today are painful but necessary,” Dropbox CEO Drew Houston said in an employee note on Wednesday. Dropbox is committed to maintaining job security until 2020, but Houston said that with the future ahead “it is clear that we need to make changes to create a healthy and prosperous business for the future.”
The company said the reduction in jobs would help it focus on its top priorities for the year, which include developing Dropbox’s core experience, investing in new products and excelling operating activities.
Dropbox switched to a standard remote work policy in October, which will apply even after the Covid-19 pandemic ended. For employees who need to meet in person or work together, the company said it would open ‘Dropbox Studios’ in San Francisco, Seattle, Austin and Dublin if it was safe.
“Our recent decisions regarding our new leadership structure and distance policy have put us on the right track, and now we need to make sure our teams and investments are in line as well. For example, our Virtual First policy means we need fewer resources to ‘supports our office environment, thus reducing our investment and redeploying the resources to drive our ambitious product card,’ ‘Houston said.
Dropbox also announced that chief operating officer Olivia Nottebohm is leaving the company on February 5th.
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