Dropbox axes 11 per cent of global workforce

COO Olivia Nottebohm also set to depart next month

Dropbox is axing 11 per cent of its global staff, which amounts to 315 people.

Its COO Olivia Nottebohm, who joined just one year ago after a five-year stint at Google is also leaving the company. Her replacement has not yet been named .

The news was broken in an email to employees from CEO Drew Houston, who said that the job cuts were "painful but necessary" to implement its new strategies for the coming months.

"Over the past year, we've talked a lot about the importance of running a tight ship and getting the company ready for the next stage of growth. This will require relentless focus on initiatives that align tightly with our strategic priorities, and having the discipline to pull back from those that don't," he wrote.

"Unfortunately, this means that we're reducing the size of some of our teams. I realise this is incredibly hard on the Dropboxers and their families who are impacted, and I take full responsibility for this decision. This is one of the toughest decisions I've had to make in my 14 years as CEO."

He added that the changes will allow the file hosting provider to be more efficient and nimble and focus on its top priorities, which include evolving the core Dropbox offering, investin in new products for remote working and improving operations.

Dropbox moved to a primarily remote working policy in October, which will continue after the pandemic ends.

"Our recent decisions regarding our new leadership structure and remote work policy have set us on the right path, and now we need to make sure our teams and investments also line up," he wrote.

"For example, our Virtual First policy means we require fewer resources to support our in-office environment, so we're scaling back that investment and redeploying those resources to drive our ambitious product roadmap."

Houston also wished Nottebohm farewell as she is set to leave the company on 5 February and described her work as "pivotal" for the business' success this year.

"She's played a pivotal role in setting us up for success in 2021, and I'm very grateful for her contributions," he added.

"Olivia brought a critical eye to our go-to-market functions, championed our customers as we shifted to a fully distributed environment, and unified our sales, marketing and support teams to create a more cohesive customer experience. She's made a positive impact on the business, and we wish her all the best in her next adventure."