Dropbox announced it is laying off 528 people, or 20% of its workforce, CEO Drew Houston wrote in a staff memo published on the company website Wednesday.
“As CEO, I take full responsibility for this decision and the circumstances that led to it, and I’m truly sorry to those impacted by this change,” Houston wrote, adding that the company “over-invested,” and will now be “flatter” and “more efficient.”
TechCrunch reports that Dropbox had the lowest growth in its history in Q2, and in August, its shares year to date lost over 20% of its value.
“This market is moving fast, and investors are pouring hundreds of millions of dollars into this space,” Houston wrote. “This both validates the opportunity we’ve been pursuing and underscores the need for even more urgency, even more aggressive investment, and decisive action.”
More details on the layoffs and “high-level changes” will be made public soon, and there will be company-wide “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 Teams and Roles Affected.
Read the full memo, here.