Dropbox announced it is laying off 528 people, or 20% of its workforce, CEO Drew Houston wrote in a staff memo published Wednesday on the company's website.
“As CEO, I take full responsibility for this decision and the circumstances that led to it, and I am truly sorry for those affected by this change,” Houston wrote, adding that the company “invested in it” and will now be “more flattering” and “more efficient”.
TechCrunch reports that Dropbox had the lowest growth in its history in the second quarter, and in August, its stock lost more than 20% of its value year to date.
“This market is moving fast and investors are pouring hundreds of millions of dollars into this space,” Houston wrote. “This validates the opportunity we have pursued and underscores the need for more urgency, even more aggressive investment and decisive action.”
More details on layoffs and “high-level changes” will be made public soon, and there will be “Town Halls later this week to answer questions and discuss our plans in more detail,” the memo continued.
Related: Apple just conducted a rare round of layoffs. Here are the affected teams and roles.
Read the full note, here.