Dropbox Inc. co-founder Drew Houston waits as Dropbox (DBX) is listed for the company’s initial public offering (IPO) at the Nasdaq Market Site in New York, U.S., March 23, 2018.
Lucas Jackson | Reuters
Dropbox is cutting its global workforce by about 11%, the company said in an 8K filing released Wednesday. The company’s stock dropped more than 6% in the premarket.
The move will affect 315 people, who will be notified by the end of the business day.
“The steps we’re taking today are painful, but necessary,” the company said Wednesday. “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.”
The company also announced that Chief Operating Officer Olivia Nottebohm will leave the company February 5.
Dropbox in October shifted to a standard remote work policy, which will be in place even after the Covid-19 pandemic ends. For employees who need to meet or work together in person, the company said it would up “Dropbox Studios” in San Francisco, Seattle, Austin and Dublin when it’s safe to do so.
This news is developing. Please check back for updates.
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