In an email to staff, CEO Drew Houston said the layoffs will involve 315 staff cuts. In the note, Houston stated:
"I realize this is incredibly hard on the Dropboxers and their families who are impacted, and I take full responsibility for this decision. This is one of the toughest decisions I’ve had to make in my 14 years as CEO.
To each of you who are affected, I am truly sorry. Please know that this is not a reflection on you. You’ve played an important part in the Dropbox story, and I will always be grateful for everything that you’ve done for this company."
Looking ahead, Houston said Dropbox's top priorities for 2021 include:
- Evolving the core Dropbox experience that hundreds of millions of customers around the world rely on;
- investing in new products built for distributed work; and
- driving operational excellence.
Dropbox: A Buyout/Takeover Target?
Still, Dropbox faces growing competition from major cloud providers like Microsoft and Google, coupled with traditional competition from Box.
Dropbox's stock ($DBX) rose in December 2020 when The Information speculated the company could be a takeover target in 2021. But shares fell about 6 percent today on the layoff news.
Dropbox's revenue was $$487.4 million in Q3 of 2020, up 14% from the corresponding quarter in 2019. Dropbox is expected to announce Q4 2020 results on February 25, 2021, according to Investing.com.