The publicly-traded online file storage and collaboration company Dropbox will lay off 11% of its global workforce summing up to 315 employees, it made known in an 8-K filing to the US Securities and Exchange Commission (SEC). 

Along with the layoffs, Dropbox has also announced that its Chief Operating Officer, Olivia Nottebohm, will step down and depart the company next month. 

Dropbox billed the layoffs as a move to “streamline its team structure in support of its business priorities”. The company says it’ll continue to hire for roles critical to growth initiatives and product expansion even after the layoffs.

“This reduction, while painful, is necessary to implement the new strategies we’ve shared over the last few months,” Dropbox’s CEO Drew Houston said in a published memo.

As it seems, Dropbox isn’t struggling but appears to not be growing as often demanded by Wall Street investors. As a result, the company has traded just slightly above its IPO price of $21 since debuting on the public markets, peaking at $25.16 over the past year.

With growth not meeting usual Wall Street tech standards, Dropbox seems to be instituting layoffs and cuts in established areas and seeking new hires in areas that’ll drive growth. 

The 315 employees laid off by Dropbox will be eligible for up to three months of base salary in North America and depending on statutory requirements in other regions. They’ll also receive their equity vest for the first quarter of 2021, Dropbox says.

“This is one of the toughest decisions I’ve had to make in my 14 years as CEO,” Dropbox CEO Drew Houston seemingly sympathized in a published memo.

Photo: Dropbox CEO Drew Houston, credit: verchmarco, licensed under CC BY 2.0

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