- Dropbox slashes 528 jobs in major restructuring effort to combat slowing growth
- Cloud storage giant struggles through lowest growth quarter ever at 1.9% YoY
- Company doubles down on AI innovation despite significant workforce reduction
Another Round of Cuts
Dropbox announced a significant restructuring, eliminating 528 positions – 20% of its staff. CEO Drew Houston revealed the decision amid declining growth rates and fierce market competition.
The cloud storage giant expects to spend $63-68 million on severance packages and benefits, primarily distributed through Q4 2024.
Numbers Tell the Story
The company faces serious headwinds, reporting just 1.9% year-over-year growth to $634.5 million in Q2 – its lowest quarterly performance ever.
User acquisition has slowed dramatically, adding only 63,000 new users to its 18-million-strong base. Company shares dropped over 20% year-to-date through August.
AI Push Despite Downsizing
Despite the workforce reduction, Dropbox continues its aggressive push into AI technology. The company recently enhanced Dropbox Dash, its AI-powered organization tool, adding enterprise features and data controls.
Houston promises to outline the company’s 2025 strategy soon, suggesting a major pivot ahead.
