Dropbox announced it will lay off 528 people, or 20% of its workforce, CEO Drew Houston said in a staff memo published on the company’s website Wednesday.
“As CEO, I take full responsibility for this decision and the circumstances that led to it, and I am truly sorry to those affected by this change,” Houston wrote, adding that the company was “overinvested.” In the future, we will strive to be “flatter” and “more efficient.”
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TechCrunch reports that Dropbox posted its slowest growth in the company’s history in the second quarter, and its year-to-date stock price has fallen by more than 20% of its value in August.
“This market is moving rapidly, with investors pouring hundreds of millions of dollars into this space,” Houston wrote. “This confirms the opportunities we have been pursuing and further highlights the need for urgency, more aggressive investment and decisive action.”
Details of the layoffs and “high-level changes” will be made public soon, and a “company-wide town hall will be held later this week to answer questions and discuss the plans in more detail,” the memo continued. .
Related: Apple has made unprecedented staff cuts. The teams and roles affected are:
