Dropbox layoffs: Dropbox, a cloud storage provider, announced a 20 percent layoff, affecting 528 employees. In a letter to staff, CEO Drew Houston explained that the company is going through a significant transition. As Dropbox moves away from its established shared financial services (FSS) model, it aims to focus on future growth opportunities with innovative products such as Dash.

“And while I am proud of the progress we have made over the past two years in certain areas of the business, we are still failing to deliver at the level our customers deserve or achieve performance comparable to that of our industry peers. So we are making more significant reductions in areas where we are overinvested or underperforming, while designing a flatter, more effective team structure overall,” Houston wrote.

In a similar move last April, Dropbox reduced its global workforce by 16% to reduce costs amid slowing cloud growth, while bringing in new talent to improve its cloud offerings. AI.

Recently, the company announced its results for the second quarter of fiscal 2024, reporting total revenue of $634.5 million, an increase of 1.9% compared to the same period from last year.

The number of paying users increased to 18.22 million, up from 18.04 million the previous year, with average revenue per paying user increasing from $138.94 to $139.93.

At the end of 2022, Dropbox had 3,118 full-time employees, including 2,583 based in the United States. Those affected by the recent layoffs will receive 16 weeks of severance pay, plus an additional week for each year of service, as well as health care benefits and job placement assistance.

CEO Drew Houston expressed regret over the decision, taking full responsibility for the changes. “As CEO, I take full responsibility for this decision and the circumstances that led to it, and I am truly sorry to those affected by this change,” Houston said.

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