The mass layoffs that have affected nearly everyone in the tech industry claimed another company today. Cloud storage and collaboration company Dropbox announced that it will lay off 16 percent of its workforce, or about 500 employees.
In a ___ Today’s blog post, Dropbox co-founder and CEO Drew Houston said the company has seen growth slow in recent days despite being profitable. In addition, he said the high growth of AI-enabled products and services has given the company more emphasis on projects that use AI. He added:
In an ideal world, we would just move people from one team to another. And we have done that wherever possible. However, the next phase of our growth requires a different mix of skill sets, particularly in AI and early-stage product development. We have been bringing in great talent in these areas for the past two years and we will need more.
Houston said Dropbox will also make cuts in other areas of the business that he says are “not executing consistently or managing performance as tightly as we need to.”
Laid-off employees will receive 16 weeks of severance pay, plus one additional week for each year they’ve worked at Dropbox, six months of health insurance, and they can keep any company equipment they own. Will be able to keep. Used for personal use.
This isn’t the first time in recent memory that Dropbox has made these kinds of cuts. In January 2021, it announced an 11% reduction in its workforce, affecting 315 employees. Today’s cuts join other big tech businesses like Microsoft, Amazon, Meta, Google, and more.