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DROPBOX WILL LAY OFF 315 EMPLOYEES, COO TO STEP DOWN

Dropbox CEO Drew Houston said the layoffs were necessary in order for the
company to focus on key initiatives, which include improving the core Dropbox
experience and investing in new products for distributed teams.
Written by Natalie Gagliordi, Contributor Jan. 13, 2021 at 7:21 a.m. PT

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Dropbox will lay off 315 employees, or approximately 11% of its workforce, in an
effort to streamline its team structure and focus on top priorities. In a
regulatory filing, the cloud-based file sharing company also disclosed that COO
Olivia Nottebohm is stepping down on February 5.


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Dropbox CEO Drew Houston said in an employee memo included in the SEC filing
that the layoffs were necessary in order for the company to focus on key
initiatives, which include improving the core Dropbox experience and investing
in new products for distributed teams. 



"Last spring I made a commitment to all of you to preserve job security through
2020, and it was important to me that we honored that promise," Houston said in
the memo. "But looking ahead at 2021 and beyond, it's clear that we need to make
changes in order to create a healthy and thriving business for the future. Over
the past year, we've talked a lot about the importance of running a tight ship
and getting the company ready for the next stage of growth. This will require
relentless focus on initiatives that align tightly with our strategic
priorities, and having the discipline to pull back from those that don't.
Unfortunately, this means that we're reducing the size of some of our teams."



In October Dropbox announced that it would make remote work the day-to-day
default for employees even once the Covid-19 pandemic is over.

Called "Virtual First", the effort aims to transform the company's offices into
"Dropbox Studios", where workers meet up with colleagues for better
collaboration and community building. Dropbox also encouraged workers to draw
their own work schedules beyond the core collaboration hours defined by the
company, in an effort to push flexible working. 




"The steps we're taking today are painful, but necessary. Our recent decisions
regarding our new leadership structure and remote work policy have set us on the
right path, and now we need to make sure our teams and investments also line up.
For example, our Virtual First policy means we require fewer resources to
support our in-office environment, so we're scaling back that investment and
redeploying those resources to drive our ambitious product roadmap," Houston
said.



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