Dropbox Cuts 20% of Workforce Amid Organizational Restructuring

CEO Drew Houston cites softening demand and complex management as key factors behind the layoffs affecting 528 employees.

This is Dropbox's second major layoff in 18 months, with the previous round in April 2023 affecting 500 employees.
The company is transitioning towards a flatter organizational structure to enhance efficiency and competitiveness.
Despite layoffs, Dropbox continues to invest in AI, particularly its Dash AI search tool, as part of its growth strategy.
Impacted employees will receive at least 16 weeks of severance pay, along with equity vesting and other benefits.
Dropbox's revenue growth has slowed, with a 1.9% increase in Q2 2024, marking its lowest quarterly growth ever.