Dropbox will lay off 11 per cent of its staff, that is, about 315 people. With most of its employees across the globe working from home or remotely, the Company has realised that it can make do with lesser staff in offices. It will help the impacted employees and will offer appropriate severance pay as well as healthcare packages.
The Company will operate as a more lean organisation in the post-pandemic world, for which it will have to reduce its headcount. In October 2020 itself the San Francisco-based company had decided that remote working will be the default work model for its staff going forward.
The cloud-storage company’s ‘virtual first’ programme allows its offices to be turned into ‘studios’ where staff can meet and collaborate. It also allows more flexibility to its employees to work as per convenient schedules suited to them. This initiative also requires the resources working from offices to be cut down, allowing the savings thus accrued to be invested in business growth, developing new products and bringing about improvements to the Dropbox experience.
The chief operating officer of the cloud-based file sharing company will also step down in early February.
The layoff news led to a drop in shares of Dropbox. The Company’s revenue was about $487.4 million in the third quarter of 2020, which is a hike of 14 per cent compared to the same time in 2019.
Dropbox will share its Q4 performance towards the end of next month.