Dropbox to cut 11% of its global workforce
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Re: Dropbox to cut 11% of its global workforce
#2I was JUST seeing job opportunities in my LinkedIn from these folks. That's just careless.
Re: Dropbox to cut 11% of its global workforce
#3I was JUST seeing job opportunities in my LinkedIn from these folks. That's just careless.
What were you seeing them for? The article quotes them saying that this cut is partially to allow them to expand some roles. That's not really careless if that's what they're doing.
Specifically they say they're cutting back some kinds of support staff due to office closures, and growing some product roles.
Re: Dropbox to cut 11% of its global workforce
#4> Dropbox also announced that chief operating officer Olivia Nottebohm will leave the company February 5.
Interesting change of leadership that was buried in the article - she was only there for < 1 year after leaving Google Cloud. Anyone here have insight / thoughts on the move in the Exec Team?
Re: Dropbox to cut 11% of its global workforce
#5Dropbox lost me permanently as a potential customer with their greed and disregard for user experience. Constant nagging if you're at ~80% your free limit and the more recent draconian device limits for two examples. I hope they fail.
Re: Dropbox to cut 11% of its global workforce
#6> Dropbox also announced that chief operating officer Olivia Nottebohm will leave the company February 5. Interesting change of leadership that was buried in the article - she was only there for < 1 year after leaving Google Cloud. Anyone here have insight / thoughts on the move in the Exec Team?
It’s not really buried, it’s right at the top as one of the two "key points".
Re: Dropbox to cut 11% of its global workforce
#7I was JUST seeing job opportunities in my LinkedIn from these folks. That's just careless.
Lot's of companies have to make cuts in some areas while continuing to hire in another. Especially a company the size of Dropbox where there are many products and teams. However I agree that its a bad look and often tough to hire when you are in the news about layoffs.
Re: Dropbox to cut 11% of its global workforce
#8Dropbox lost me permanently as a potential customer with their greed and disregard for user experience. Constant nagging if you're at ~80% your free limit and the more recent draconian device limits for two examples. I hope they fail.
Well, I don’t hope they fail, but I will not be renewing my subscription this year. I’ve been onboard since they announced paid plans and.. it’s just more of an annoyance than it is unique or useful for me.
Re: Dropbox to cut 11% of its global workforce
#9Dropbox has been hammered by Wall Street ever since it went public. On the surface it should be trading well enough given it's revenue growth from when it went public to now, however, the narrative of competing with both Microsoft and Google was a tough one to play down.
Revenue growth will slow down to below 20% in 2021 which basically starts to take DBX out of the high growth tech stock focus and it is trading at less than 5x 2021 revenue when the median is somewhere closer to the 12-14x range and that's for companies below 30% growth.
The same was seen with Slack. Though they had great revenue growth, the narrative was that they couldn't compete with Microsoft and so their stock never really traded at a comparable revenue multiple compared to others.
It could be said that they have a heavy spend on Sales and Marketing but the same could be said of plenty of other Enterprise tech focused companies like MongoDB that still commands a very high forward looking multiple.
Unfortunately from the end-user side the experience has suffered somewhat and I've personally switched away from Dropbox so I can't really say they are doing great on the product side and the amount of "Growth Hacking for Revenue" that is now part of the product experience is a bit off-putting.
Also shows the potential for issues if you end up solely dependent on one product and don't diversity, especially if it's seen as a commodity.
The work force reduction is purely to turn the company profitable on a net basis and the trailing twelve months they've already gotten into the black. That's down from a $400MM loss just a couple of years ago.
But the belief is that there isn't a tremendous amount of profitability internally, because the expenditures are just too high, and cutting further into that theoretically will reduce revenue growth further.
Re: Dropbox to cut 11% of its global workforce
#10Dropbox lost me permanently as a potential customer with their greed and disregard for user experience. Constant nagging if you're at ~80% your free limit and the more recent draconian device limits for two examples. I hope they fail.
I get what you're saying but "greed" is not the way I would put it. Look at their financials, 2020 is the first year in their history in which they will have been profitable at all.
I think as consumers we're starting to get totally unrealistic expectations about what kinds of services small companies (ie. not behemouths like Google, Microsoft, Apple) should be able to provide to everyone for free.
With that said, yeah, not a fan of their changes. I stopped using Dropbox a while ago.