dustup do n’t seem to think anything these days . Dropbox CEO Drew Houston this week told employee he takes “ full answerableness ” as he announced a round of layoffs affecting500 employee . He is , as far as we can enjoin , remaining on as chief operating officer and continues to hold a multiple - billion clam ownership stake in the swarm repositing company .
“ As chief executive officer , I take full responsibleness for this decision and the portion that run to it , and I ’m truly lamentable to those impact by this modification , ” spell Houston according toThe Register .
“ I cognize this is fabulously difficult and unwelcome intelligence . To everyone leave Dropbox , I ’m deeply thankful for everything you ’ve done for our company and our customer . ”
Dropbox CEO says he is taking ‘full accountability’ after laying off 500 employees.Bloomberg / Getty
Employees bear upon by the cuts will get a lower limit of sixteen weeks ’ pay and their origin Cary Grant for Q4 2024 will enthrone . They can also keep their work computer . Dropbox cut 16 % of staff in 2023 amid a wave of cuts across the industry following years of rapid hiring during the pandemic . gross growth has been slow at Dropbox , in the single - digits more recently .
Dropbox started as a satiny and wanton way to back - up file online , but has not quite been the major winner account that was once hope . To be sure , it has a market place value of over $ 8 billion . That ’s impressive but not the level of homerun that investors and employees trust for when they sign on up to join a tight - originate tech company . Dropbox ’s stock is down 10 % in 2024 , which is big for workers at these companies as their earnings is often heavily - weighted towards share .
loss leader often claim that they are taking accountability when they screw up — and they should , as chief operating officer like Houston are the ones who mismanaged the company to the point of demand layoffs in the first place . But rarely does “ taking accountability ” in reality amount to much of anything . The most notable recent example is perhaps that Microsoft CEO Satya Nadella asked the company ’s dining table to thin his earnings in Light Within of the major Crowdstrike literary hack . But in that subject , his overall recompense still increase for the class by $ 30 million . Just , a littlelessup .
Houston as a atomic number 27 - founder of Dropbox holds around 20 % of the equity in the troupe and most of its vote shares , and ca n’t so well be removed . But for other leadership , one line made to support their continued employment is they take the brunt of tough decisions , and they would be in eminent requirement at other company . Meta ’s Mark Zuckerberg study a lot of flak after creating a bloodbath at his company during the pandemic , veer enceinte swaths of the administration , but the troupe is a money print goliath . You have to question if some other chief operating officer like Houston would be able-bodied to keep their jobs if not for hold most voting share .
Dropbox for years has been outgunned by its bigger rivals that similarly offer swarm storage but at a much bombastic scale . It also faces increased contention in productiveness software from the the likes of of Google and Microsoft , which have been investing heavily in AI that is supposed to help oneself people work more productivity ( the jury is still very much out on whether it ’s helpful ) .
It ’s hard for a troupe like Dropbox to compete against the big guys , but it ’s been investing in its Dash AI search tool that ’s guess to make it easy to search across various productivity apps .
drew houstonDROPBOX
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