The cost of hybrid work: Dropbox estimates nearly 400 million losses from not using their offices
We have passed from colorful offices with dining room, table football and relaxation room to work from home. Something that is beginning to have its first repercussions, also economic, in companies.
In its latest financial results, Dropbox imputes a $ 398.2 million loss resulting from the decision to sublet most of its office space.
Estrategia Virtual First
This economic impact is part of your advertised “Virtual First” policy why employees They only had to go to the offices when strictly necessary.
It should be remembered that it was in the fall when Dropbox decided that its employees would go to work permanently remotely, so the company you would only use a small part of your office space for occasional face-to-face collaborations. As a result, Dropbox went on to sublease the rest of its space.
Dropbox has offices in San Francisco, Seattle, Austin and Ireland and ensures that, when the valuation of these properties is lowered, it must impute in its fourth quarter results losses from this impairment of $ 398.2 million.
In fact, Dropbox decided do not bet on hybrid work models (in which employees can choose to work from home or in the office), considering that different experiences could be created for employees and, ultimately, generate “barriers to inclusion” and professional inequalities.
Possible impacts in Europe
“We reassess our real estate assets and calculate the value of the office space to be sublet based on current market conditions,” Dropbox explains. In addition, the company advises that, especially in Europe, additional charges may continue to be incurred related to certain European leases for the next twelve months. Some items that could range, according to their calculations, between 0 and 50 million dollars “depending on the current market and economic conditions.”
These losses are considered one-time attributable, but they detract from Dropbox’s bottom line. At first term of that same fiscal year, the company achieved, for the first time since its IPO, profits. After the impact of Covid-19 and the popularization of teleworking, the company achieved better results in the second and third quarters.
As part of this new labor policy, the company does not rule out open small workspaces in those places where several of its employees can meet, instead of having to go to the cities where the company has offices.