Is Dropbox a feature or a product

Dropbox is laying off eleven percent of its employees - that's why

Denise Bergert

The cloud storage provider wants to lay off 315 employees worldwide - that is around eleven percent of the workforce.

EnlargeDropbox is laying off 11 percent of its employees.

Dropbox starts the new year with austerity measures. In an email to employees this week, CEO Drew Houston said the company will lay off 315 employees worldwide. The reduction of the workforce by eleven percent is necessary, according to Houston, in order to be able to implement the new corporate strategies that have been decided in the past few months. Last year, Houston promised its employees that their jobs would be safe until 2021. Dropbox kept this promise, but adjustments are necessary for the new year to keep the company healthy.

Houston apologizes to its employees and takes full responsibility for the layoffs. This is one of the hardest decisions Houston had to make in his 14 years as Dropbox CEO. In 2020, many employees switched to the home office and the company's new virtual first policy means that fewer resources will be used in the offices. The company wants to cut back investments at this point and instead advance the product roadmap. Existing Dropbox functions are to be further developed in 2021. The company also wants to invest in new products and optimize existing offers.