Dropbox Slashes 315 Staff, COO Heads For The Door
Cloud storage service Dropbox is slashing its global workforce by 11 per cent as its COO steps down from her role after less than a year.
Following the announcement that Olivia Nottebohm, who joined Dropbox from Google at the end of January 2020, will exit the job on February 5, Dropbox shares fell by around six per cent to $22.26. Employees were also told in a letter from CEO Drew Houston that 315 jobs would go worldwide as the company shifts resources due to COVID-19.
“Our Virtual First policy means we require fewer resources to support our in-office environment, so we’re scaling back that investment and redeploying those resources to drive our ambitious product roadmap,” said Houston.
“I realise 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.”
The company announced last year that it would shift to a primary model of remote work, with its physical spaces no longer in use for daily individual work. The company said at the time that the aim for its “Virtual First” policy would be to combine the best features of remote and in-person work.
“Even though our product was built for this and our transition was relatively seamless, many of the things we’ve been trying to solve for as a company have intensified during this time — always-on hours, constant notifications, fragmented tools,” said Houston in October.
“We’re laser focused on designing products to transform how remote work happens and by living the reality of Virtual First day to day, we think we’ll better understand our customers’ needs and be well positioned to evolve our product accordingly.”
No replacement for Nottebohm has yet been named, but Houston praised her on her way out, saying she played a “pivotal role” in positioning the company for 2021.
“Olivia brought a critical eye to our go-to-market functions, championed our customers as we shifted to a fully distributed environment, and unified our sales, marketing, and support teams to create a more cohesive customer experience. She’s made a positive impact on the business, and we wish her all the best in her next adventure,” he said.
The company is offering free job placement services to its sacked staff.