Dropbox is trimming its workforce by 20 per cent. That means, about 528 employees will be laid off by the American file hosting service in a bid to do away with unnecessary layers of management that are adding to the complexities of the business.
The employees were reportedly informed about the job cuts by Drew Houston, CEO, Dropbox. The cuts are aimed at achieving more efficiency and making the organisational structure more flat. The company is endeavouring to make its core offerings stronger even while pushing the growth of its new products.
The employees in the areas that are consuming more resources or investments and not performing as expected will be targeted in this round of layoffs. Dropbox has assured full support to the impacted employees during this transition.
Those affected will be paid 16 weeks’ salary, with one additional week of pay for every year of service at the organisation. The severance package will differ from region to region, in accordance with the local regulations and practices.
Payouts will be made to cover medical leave or family leaves and all eligible remaining leaves and upcoming leaves that have been approved. Visa holders will receive extra time for immigration consultation too. Employees from the US will be granted up to six months of healthcare benefits (COBRA), while Canadian employees can expect their healthcare benefits to be extended by a month. Free outplacement services and career guidance will also be provided to the outgoing employees.
