In the latest Dropbox news, it was revealed that the Silicon Valley startup has decided to cut back on some employee perks. This comes in an effort to increase profitability and to adapt to the changes in the financial environment.
Business Insider reported that Dropbox has become a part of several startups that have taken cost-cutting measures in order to focus more on profitability. The company, though, has decided to keep its 5-foot chrome panda statue, which is rumored to cost around $100,000.
"Pandas have meant many things to Dropboxers over the years, and the idea here was to commemorate the original...it wasn't the right call," a note next to the statue read. "When it comes to building a healthy and sustainable business, every dollar counts. And while it's okay for us to have nice things, it's important to remember to ask ourselves, 'would I spend my own money this way?'"
"We're keeping the panda as a company-wide reminder of the importance of both our past and future in thoughtful spending - but it's just one example. If you spot other ways we can help Dropbox save, please share them."
Dropbox has also canceled its free shuttle in San Francisco as well as its gym washing service. The employee perks cost the company at least $25,000 a year per employee.
Evernote, Jawbone and Tango are among the startups that have decided to push through with cost cuts. Layoffs, office closures and reduced employee perks are just some of the ways that these companies have reduced their spending.
The publication noted that the changes have something to do with the slowing venture-funding environment in Silicon Valley. Apparently, investors have lost their patience for startups that have failed to gain good returns after years of free spending.
According to Silicon Beat, venture capital funding has already dropped since last year. Companies such as Zenefits, Optimizely, Jawbone, Mixpanel and Zoosk have started to cut their workforce number while others, such as SpoonRocket, have ultimately closed.
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