Dropbox stock drops after plan to cut 11% of the workforce

Dropbox stock drops after plan to cut 11% of the workforce

Shares of Dropbox Inc. DBX, -6.31% sank 4.1% in morning trading Wednesday, after the collaboration platform company said it will cut 315 jobs, or about 11% of its global workforce.

The company said the cuts comes as its Virtual First policy requires fewer resources to support an in-office environment, and will lead to a “more efficient and nimble” company. The companies said North America employees who are laid off will be eligible for up to three months of pay, and all employees will be eligible for up to six months of health services. Separately, the company said Chief Operating Officer Olivia Nottebohm will step down, effective after Feb. 5. The stock has advanced 11.3% over the past three months, while the S&P 500 SPX, +0.23% has gained 8.3%.

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