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Feb 18 (Reuters) - Dropbox Inc said on Thursday itwould sublease some of its office spaces as the file hostingservice transitions to a remote working model.
The firm, which has a sprawling warehouse-styled officebuilding in San Francisco's South of Market neighborhood, is oneof the many technology companies to make work from home apermanent arrangement for employees after the trend rose duringcoronavirus lockdowns, reducing the need for large offices.
"As part of the 'Virtual First' strategy, we will retain aportion of our office space to be used for team collaborationand a portion will be marketed for sublease," Dropbox said.
The firm, which now considers remote work as the primaryexperience for all employees, laid off 11% of its workforce lastmonth saying it now needs fewer resources.
Social networking companies Twitter Inc andFacebook Inc and payments firm Square Inc also letpeople work from home permanently.
Facebook Chief Executive Mark Zuckerberg had said that heexpects half the company's workforce would eventually do theirjobs outside offices in five to 10 years.
Dropbox, which had only three profitable quarters as apublic company, posted a bigger loss for the fourth quarter, hitby a one-time impairment charge of nearly $400 million relatedto its real estate assets.
The company's net loss widened to $345.8 million in thethree months ended Dec. 31, from $6.6 million last year.
However, on an adjusted basis, the company earned 28 centsper share, above the average analyst estimate of 24 cents,according to Refinitiv IBES.
The beat was helped by the company's quarterly revenuecrossing the half billion mark for the first time on over amillion new paying user additions and higher average revenuefrom each of them.(Reporting by Shariq Khan and Subrat Patnaik in Bengaluru;Editing by Maju Samuel)