They need space, furniture, equipment, appropriate broadband service, and they have to drink their coffee at home and go to the bathroom at home, and clean the kitchen and the bathroom, and buy their own toilet paper and supplies and lunches, and pay for the added utility costs of powering a home office all day long. Unneeded office space is going to get dumped, with all the cost cuts associated with it, and the people that take care of it.īut employees have to create an office at home. And it entails some radical shifts in spending, shifts from the company to the employees. Shifting the workforce to be remote all the time, from the CEO on down, is a radical change for a company, sending all kinds of previously sacred assumptions flying out the window. “For example, our Virtual First policy means we require fewer resources to support our in-office environment, so we’re scaling back that investment,” Drew Houston said. And then he cites this shift to work from anywhere for these cost cuts: This cut is “necessary to implement the new strategies we’ve shared over the last few months.” Namely its “remote work policy,” which Drew Houston himself exemplifies. OK, 2020 is over, it’s now January 13 of 2021, and here come the layoffs. In an email to employees, then published as a blog post, cofounder and CEO Drew Houston, who has already bailed out of San Francisco as part of the California Techsodus and purchased a home in Austin for his full-time residence, said that the company made “the difficult decision” to cut its “global workforce by 315 people, or approximately 11% of the company.”Įarly on in the Pandemic, as millions of people lost their jobs in a matter of days, Dropbox was one of the tech companies that said that it wouldn’t lay off people in 2020. In a new twist that will likely become more common, it specifically cited work-from-anywhere as one of the reasons for these layoffs because suddenly, with people working remotely, there are “teams” that used to deal with those people in the office, and that used to deal with the office itself, that aren’t needed anymore. Companies already said they’d cut salaries if folks move to cheaper locations.ĭropbox, which offers file hosting in the cloud and is headquartered in San Francisco, and which had announced on October 13 that it was switching to permanent work-from-anywhere, today announced cost cutting moves associated with this shift: laying off 11% of its workforce. Oh my, the free gourmet cafeteria is gone. Corporate cost cutters salivate over working from anywhere.
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