Dropbox lays off hundreds of employees before “transition period”

Dropbox market share decline

Dropbox’s market share has been declining as competitors like Google Drive and Box become more popular. The company, which has 18 million users, is said to have added just 63,000 new customers in the last fiscal quarter, and revenue growth is virtually non-existent, only in the low single digits.

“As we communicated last year, we are in a transition phase as a company,” said the CEO. “However, it is no longer sustainable to manage this transition while maintaining our current structure and investment levels.”

The reality becomes clear when you look at the numbers. In the second quarter of 2024, Dropbox experienced its slowest period of growth ever, increasing just 1.9% year-over-year on revenue of just $634.5 million. By August, the company’s shares had lost 20% of their year-to-date value.