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Dropbox lays off 20% of employees and joins Big Tech's flattening trend. Read CEO Drew Houston's memo.

Dropbox Lays Off 20%, Follows Big Techs Shrinking Trend

Dropbox Lays Off a Fifth of Its Workforce

Dropbox has laid off about 20% of its workforce, or approximately 740 employees, in its first major round of layoffs since its founding in 2007. The company announced the cuts in a blog post by CEO Drew Houston, who cited “the economic downturn” and the need to “focus our resources on our highest priority initiatives.” Dropbox is the latest in a string of tech companies to announce layoffs in recent months, including Amazon, Google, Meta, Microsoft, Salesforce, Snap, and Twitter. The layoffs come as the tech industry faces slowing growth, rising interest rates, and the prospect of a recession.

CEO Drew Houston's Memo to Employees

In his memo to employees, Houston said that the company had made the decision to lay off employees “after careful consideration and exploration of other options.” He said that the company had been “impacted by the economic downturn” and that it needed to “make changes to ensure our long-term health.” Houston said that the company had made the decision to lay off employees “after careful consideration and exploration of other options.” He said that the company had been “impacted by the economic downturn” and that it needed to “make changes to ensure our long-term health.”

The Tech Industry's Shrinking Trend

The layoffs at Dropbox are part of a broader trend of tech companies laying off employees in recent months. Amazon has laid off over 18,000 employees, Google has laid off over 12,000 employees, Meta has laid off over 11,000 employees, Microsoft has laid off over 10,000 employees, Salesforce has laid off over 8,000 employees, Snap has laid off over 6,000 employees, and Twitter has laid off over 5,000 employees. The layoffs come as the tech industry faces slowing growth, rising interest rates, and the prospect of a recession.