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Dropbox announces 20% global workforce reduction

blog.dropbox.com

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Re: Dropbox announces 20% global workforce reduction

#411

Post by s1artibartfast »

amelius wrote: post #365
andygcook wrote: post #208

For context, Drew Houston's total compensation for the year in 2023 was $1.5M: > According to our data, Dropbox, Inc. ... paid its CEO total annual compensation worth US$1.5m over the year to December 2023. That's a notable increase of 34% on last year via https://finance.yahoo.com/news/heres-why-dropbox-inc-nasdaq-... Even if Drew took minimum wage, that would save ~15 jobs assuming $100K all-in comp (which seems lo…

> Layoffs suck and no one wants to do it, but sometimes it's needed to save the ship. But they always fire the weak employees, not the ones that can easily help themselves. Maybe we should have some laws that randomize the layoffs ...

Im not sure if you are sarcastic or not.

If not, I think you have a highly unrealistic opinion of who the company operates for.

Re: Dropbox announces 20% global workforce reduction

#412

Post by steveBK123 »

onion2k wrote: post #398
amelius wrote: post #365

Earlier quoted context omitted.

> Layoffs suck and no one wants to do it, but sometimes it's needed to save the ship. But they always fire the weak employees, not the ones that can easily help themselves. Maybe we should have some laws that randomize the layoffs ...

they always fire the weak employees This is definitely not the case. Companies use a lot of different mechanisms to choose who to lay off, and it's rarely entirely performance based.

Arguably from what I've seen it is TOO random or non-performance based.

Some combination of personal dislike and unfamiliarity.

The people making the cuts are not line managers and are sometimes given very short amount of time to make their cut list. So "oh I know that person" stays vs "I have no idea what they do / they asked me a pointed question in a meeting once" goes.

Re: Dropbox announces 20% global workforce reduction

#413

Post by JAlexoid »

renewiltord wrote: post #354
echoangle wrote: post #295

Earlier quoted context omitted.

I always wonder what gives these people the drive to continue. Maybe I’m lazy and lacking vision but if I were worth 2B, I don’t think I would go to the office every day just to get accused of mismanagement when I have to lay people off. I would take my yacht to the Caribbean and slack off.

Yeah but if you were worth $10m, $100m, $250m, would you take it easy? If you would, then you wouldn’t get to $2b.

Your presumption is that it's about the money for everyone.

But there's a lot more at play when you are rich enough to not worry about money.

Re: Dropbox announces 20% global workforce reduction

#414

Post by napierzaza »

andygcook wrote: post #208

For context, Drew Houston's total compensation for the year in 2023 was $1.5M: > According to our data, Dropbox, Inc. ... paid its CEO total annual compensation worth US$1.5m over the year to December 2023. That's a notable increase of 34% on last year via https://finance.yahoo.com/news/heres-why-dropbox-inc-nasdaq-... Even if Drew took minimum wage, that would save ~15 jobs assuming $100K all-in comp (which seems lo…

[dead]

Re: Dropbox announces 20% global workforce reduction

#415

Post by infamouscow »

amelius wrote: post #365
andygcook wrote: post #208

For context, Drew Houston's total compensation for the year in 2023 was $1.5M: > According to our data, Dropbox, Inc. ... paid its CEO total annual compensation worth US$1.5m over the year to December 2023. That's a notable increase of 34% on last year via https://finance.yahoo.com/news/heres-why-dropbox-inc-nasdaq-... Even if Drew took minimum wage, that would save ~15 jobs assuming $100K all-in comp (which seems lo…

> Layoffs suck and no one wants to do it, but sometimes it's needed to save the ship. But they always fire the weak employees, not the ones that can easily help themselves. Maybe we should have some laws that randomize the layoffs ...

When layoffs are random, it engenders a profound sense of betrayal among those who have diligently gone the extra mile. It severs ties and creates a chilling effect, dampening the morale of those who remain.

Employees, acutely aware that their efforts might be disregarded in the next round of cuts, become increasingly disincentivized to exceed expectations. The result is a workforce more focused on survival than excellence, fostering an environment where mediocrity thrives.

Re: Dropbox announces 20% global workforce reduction

#416

Post by spacebanana7 »

jnwatson wrote: post #343
echoangle wrote: post #295

Earlier quoted context omitted.

I always wonder what gives these people the drive to continue. Maybe I’m lazy and lacking vision but if I were worth 2B, I don’t think I would go to the office every day just to get accused of mismanagement when I have to lay people off. I would take my yacht to the Caribbean and slack off.

Even if he still wants to work, restructuring a second tier post-growth tech company wouldn't be my first choice.

Yeah I figure a long shot deep tech project would be better suited to a billionaire. Little to no accountability for the first decade or so, and loads of glory if it somehow works out.

Re: Dropbox announces 20% global workforce reduction

#417

Post by neilv »

FredPret wrote: post #231
yellow_lead wrote: post #184

Earlier quoted context omitted.

I dunno. It may take 1-2 months to prepare for Leetcode style interviews, and this can be pretty mentally exhausting. Every time you fail to solve a leetcode question, it feeds your imposter syndrome, which is probably even worse due to getting fired.

If leetcode wasn't hard enough to make a good programmer fail now and then, there would be no point to it.

If Leetcode didn't provide discrimination defense and neg the candidate shortly before offer, there would be no point to it.

Re: Dropbox announces 20% global workforce reduction

#418

Post by pclmulqdq »

hiddencost wrote: post #384
andygcook wrote: post #208

For context, Drew Houston's total compensation for the year in 2023 was $1.5M: > According to our data, Dropbox, Inc. ... paid its CEO total annual compensation worth US$1.5m over the year to December 2023. That's a notable increase of 34% on last year via https://finance.yahoo.com/news/heres-why-dropbox-inc-nasdaq-... Even if Drew took minimum wage, that would save ~15 jobs assuming $100K all-in comp (which seems lo…

Uh, drop box cost per employee is likely closer to $750k, not $100k.

That $1.5M comp package is about 2-4 employees being laid off. It's not very many people.

It's also insanely low for a CEO, but about right for the CEO of a company in decline (which dropbox is).

Re: Dropbox announces 20% global workforce reduction

#419

Post by beezlebroxxxxxx »

elric wrote: post #90

I'm always a bit confused by profitable companies with (presumably) large reserves laying off lots of people. I get that they want to remain profitable. But sure 500ish people could be put to some use? A new product, a new market, a spinoff. Whatever? Are you telling me that no one in such a big, wealthy company of clever engineers has any use for a bunch of talented people?

> But sure 500ish people could be put to some use? A new product, a new market, a spinoff. Whatever? Are you telling me that no one in such a big, wealthy company of clever engineers has any use for a bunch of talented people?

I think a lot of the low hanging fruit in tech has been eaten up, bought up and consolidated, or actually was recognized as much more difficult and expensive than they actually thought. The leadership talent and vision in a lot of these companies is also painfully lacking. In short, to answer your last question: probably not. And I think they're terrified that Wall Street is going to notice.

Re: Dropbox announces 20% global workforce reduction

#420

Post by alephnerd »

tqi wrote: post #364

TBH it feels like Dropbox has a pretty fair earnings multiple at the moment (~4X). Have we reached a point where tech companies have been around long enough that they can / should enter a sort of maintenance mode? It feels like there is a company version of the Peter Principle. Why do they (Dropbox specifically) need to continue to "innovate"? Wouldn't it be better for all parties if they just focused on maintaining…

> pretty fair earnings multiple at the moment (~4X).

Dropbox's EBIDTA is 14.67, but most Software Companies tend to have an EBIDTA of 28.

Dropbox is significantly underperforming compared to their peers.

Furthermore, cloud file storage has become commodified and Dropbox missed the DLP, DSPM, and AI Search train.

> Have we reached a point where tech companies have been around long enough that they can / should enter a sort of maintenance mode

Absolutely not.

If you do not innovate as a software company, you risk becoming commodified.

And if BUs within a company fails to execute on their innovation or GTM strategy, they will be let go.

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