Dropbox has announced its second significant round of layoffs within two years, cutting approximately 20% of its workforce, or 528 positions. CEO Drew Houston explained that the decision was made to address areas of over-investment or underperformance within the company, although some departments remain strong. As CEO, Houston acknowledged full responsibility for the layoffs, expressing regret and gratitude toward those affected by the decision.
The company estimated that the layoffs would incur costs between $63 million and $68 million, covering severance packages with at least 16 weeks of pay. Departing employees will also receive their Q4 2024 equity vesting and retain office equipment for personal use.
Dropbox had previously reduced its workforce by 16%, citing the impact of AI and a maturing market as primary challenges. Despite these cuts, Dropbox remained profitable and has continued its focus on AI, particularly its Dash AI search tool, which is being developed in collaboration with Nvidia.
Recently, Dropbox reported revenue growth of just under 2%, with total revenue reaching $634.5 million. Additionally, the company has allocated $540 million toward share repurchases in the first half of the year to bolster its stock price, with another $868 million set aside for potential buybacks as of June 30.
Have you read?
Impact of Titles on Your Executive Career – Negotiating Job Titles and more!
5 Reasons being dog friendly is very good for business.
Do you want to change things in your organization? Perhaps it begins with changing how you think.
Mastering Leadership- How Clear Expectations Drive Success.
Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz
