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Dropbox announces 20% global workforce reduction

blog.dropbox.com

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Re: Dropbox announces 20% global workforce reduction

#481

Post by apwell23 »

geodel wrote: post #396
stonemetal12 wrote: post #176

Earlier quoted context omitted.

Stop saying "take responsibility" if they aren't actually. If you knock a girl up and you "take responsibility" it means you getting married. If you are in a car wreck and you "take responsibility" it means you are paying for repairs. If you commit a crime and "take responsibility" you are going to jail. So if a CEO is "taking responsibility" it should be something like that second case, dollars from their own pocket…

[flagged]

GP is attacking annoying bullshit language. Not the CEO.

Re: Dropbox announces 20% global workforce reduction

#482

Post by jayd16 »

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?

What's the alternative? Busy work and shrinking equity value until things turn around or I get a much more abrupt layoff?

I think I prefer the severance, the full disclosure, the opportunity to find another job and the possibility to keep teams together at a new thing.

Re: Dropbox announces 20% global workforce reduction

#483

Post by blitzar »

ziddoap wrote: post #121
empath75 wrote: post #82

Earlier quoted context omitted.

Layoffs happen even in well run companies.

Well run companies laying off 20% of the global staff? None come to my mind, do you have any examples?

> Well run companies laying off 20% of the global staff?

Well run companies laying off 20% of the global staff a year after laying off 20% of the global staff?

Re: Dropbox announces 20% global workforce reduction

#484

Post by alberth »

bravetraveler wrote: post #453
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…

https://blog.dropbox.com/topics/company/a-message-from-drew Drew is developing a habit. 16% last year edit: 11% before that: https://dropbox.gcs-web.com/node/8916/html

It's less of a habit and more indication of a matured business.

Their revenue has only been growing ~5% (and slowing to just 1% most recent quarter).

When you aren't growing, you must focus on operation efficiencies.

Rule of 40, now being applied to margin.

Re: Dropbox announces 20% global workforce reduction

#485

Post by anon291 »

pjmlp wrote: post #458
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…

Nope, MBAs have to learn exponential growth is impossible to accomplish forever. Companies should be managed to be profitable, while paying employees and business expenses. Anything other is a pipe dream that eventually blows up, but since only employees suffer while the MBA guys go to become CEO of yet another adventure, who cares. /s

The myth of exponential growth is not that companies can't grow exponentially forever (since that's the case for most companies) but rather that the valuation of these companies depends on exponential growth (it does not). Most public companies in the United states do not experience the exponential growth many tech startups do, but do perfectly well for themselves, their customers, and their employees.

No one is pushing for exponential growth. If a company wants to stop, declare a dividend, and be done with it, and let investors choose a new rodeo.

Re: Dropbox announces 20% global workforce reduction

#486

Post by otteromkram »

dandigangi wrote: post #468
pjmlp wrote: post #462

Earlier quoted context omitted.

In many countries severance package is guaranteed by law.

USA: lol ok but no

Yet, people still vie from all over to work at US companies and we still draw the best talent.

There's also unemployment benefits for US workers.

Haters gonna hate, I guess.

Re: Dropbox announces 20% global workforce reduction

#487

Post by yoshyosh »

echoangle wrote: post #295
bhouston wrote: post #244

Earlier quoted context omitted.

> Drew Houston's total compensation for the year in 2023 was $1.5M That is insanely low for the CEO of a public company of Dropbox's size. But I suspect he owned a lot of shares in the company so when it went public, so he doesn't need salary, it is just a rounding error in terms of his wealth. EDIT: Yeah, he is worth $2B according to Forbes: https://www.forbes.com/profile/drew-houston/

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.

He breaks it down in this interview, I believe in this section https://youtu.be/KSeraZxSAbQ?t=1350

Ultimately he mentions that being CEO is a rare opportunity to play a more infinite game and practice the craft of getting really good at something that doesn't have an end

Re: Dropbox announces 20% global workforce reduction

#488

Post by teitoklien »

pixelatedindex wrote: post #435
Matticus_Rex wrote: post #406

Earlier quoted context omitted.

>that should make that person one of the people on proverbial track That's a satisfying thing to say, but as practical advice it's absolutely terrible . Often that person's leadership wasn't the problem, but even when it was, that doesn't necessarily mean that the company will be better-off without them. And that's the question -- what will make the company most likely to be the most successful going forward? Even if…

> Often that person's leadership wasn't the problem Then what is the problem? Ultimately you’re paid the big bucks for being held responsible. Why isn’t it never something like the CEO doesn’t get any stocks that year. I’m not saying he needs to leave the company but maybe he should take a substantial hit to his pay. He has enough money to put food on the table for many years, unlike the people who are let go where i…

The ones out of job can join a different company, america’s unemployment rate especially in the tech sector tends to be low.

Them doing layoffs doesnt mean the people become destitute.

It is better to layoff people who are not adding value to a company, so that those newly unemployed folks can join a different company and build great products and add more value to the economy.

Ofcourse this only applies to US tech sector where hiring is tight. Especially when coming out of top tier companies like dropbox on your resume.

I don’t think its that dramatic, folks who tend to hold similar ideologies like you state, tend to not even bat a single eye, when average americans who lack the privilege of a tech worker lose their job to automation (with tech) or outsourcing or due to overburdened climate regulations and redtape leading to fewer factory jobs in America.

This is not the titanic, those people will move on to places where they’ll have a chance for promotion.

Re: Dropbox announces 20% global workforce reduction

#489

Post by bravetraveler »

alberth wrote: post #484
bravetraveler wrote: post #453

Earlier quoted context omitted.

https://blog.dropbox.com/topics/company/a-message-from-drew Drew is developing a habit. 16% last year edit: 11% before that: https://dropbox.gcs-web.com/node/8916/html

It's less of a habit and more indication of a matured business. Their revenue has only been growing ~5% (and slowing to just 1% most recent quarter). When you aren't growing, you must focus on operation efficiencies. Rule of 40, now being applied to margin.

Yea, that's fair. I'm just being critical of the 'facade' (said with less ire than it sounds). The size is no surprise, in or out. I'll be mildly merciful - not all his doing

Re: Dropbox announces 20% global workforce reduction

#490

Post by wmfiv »

cruffle_duffle wrote: post #366
gcr wrote: post #230

Earlier quoted context omitted.

The severance packages suck. COBRA is the single largest expense for departing employees. Industry standard is to offer 18 months, not 6. Many job searches take longer than 6 months, so employees will be left high and dry right when they need it most.

> COBRA is the single largest expense for departing employees. Life pro tip: Do not use COBRA!!!!! It is almost always much, much cheaper to find an ACA compliant healthcare plan on your state's health insurance market. For one thing the plans will often be cheaper (though with fewer features). For another ACA plans qualify for tax credits, etc and COBRA doesn't. When I got laid off I made one of the worst financial…

Please look at your individual situation and don't take this suggestion blindly. If you've already contributed significantly to your deductible or out-of-pocket maximum it can definitely make sense to continue with COBRA.

Also you can game the COBRA enrollment window. You have 60 days from your loss of coverage to elect COBRA and once you elect COBRA you have another 45 days to submit payment. You can elect on the 59th/60th day and then pay 45 days later if you ended up needing the coverage. If you don't need the coverage don't pay.

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