Dropbox Layoffs: 20% of staff being cut amid ‘softening demand’

What’s going on at Dropbox?

Dropbox is slashing approximately 20 per cent of its global workforce, or 528 jobs, as the tech company undergoes a “transitional period.”

CEO Drew Houston told staff in a letter on Oct. 30 that he takes full responsibility for the decision.

“We continue to see softening demand and macro headwinds in our core business,” Houston said.

“But external factors are only part of the story. We’ve heard from many of you that our organizational structure has become overly complex, with excess layers of management slowing us down.”

He added that more details about Dropbox’s 2025 strategy will be shared in the coming days.

SEE ALSO
• Dropbox laying off 16% of staff, shifting focus to AI
• Meta Layoffs: Reality Labs, Instagram, and WhatsApp teams affected
• Canadians reportedly affected as Nokia slashes staff

Canadian staff affected

Houston noted in his letter to staff that impacted “Canada-based workers” will be eligible for a “one-month healthcare extension” among other benefits.

Dropbox didn’t disclose how many Canadian jobs are being eliminated during the latest round of restructuring.

According to LinkedIn, the company employs more than 160 people in the country.

Severance pay for Dropbox Canada employees

While Dropbox said all affected workers will be eligible for at least 16 weeks of severance pay, Canadian staffers who are let go could be owed as much as 24 months’ pay.

In Canada, non-unionized employees at the tech company are entitled to a full severance package when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia. In some cases, this can also apply to independent contractors.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause.

It can be as much as 24 months’ pay—depending on a variety of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. 

An employer’s deadline to sign back a severance offer isn’t legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance for tech sector staff
• Severance entitlements in a recession

Major layoffs continue

The workforce reduction at Dropbox comes amid a flurry of job cuts in 2024.

Other big names, including Volkswagen, Boeing, Deloitte, Loblaw, Ricoh, ApplyBoard, Qualcomm, Atlantic Music Group, and IBM, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• CareerBuilder + Monster lays off 15% of staff: Report
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.