Dropbox plans to reduce its global workforce
by 16%, affecting approximately 500 employees, as a result of slowing
cloud growth and the arrival of "the AI era of computing."
Instead,
the cloud storage company will hire new talent to help develop its AI
projects. Dropbox's CEO, Drew Houston, said its upcoming phase of
expansion will require a diverse range of skill sets, with an emphasis
on AI and product development in the early stages.
- Despite
being profitable, Houston said Dropbox is moving pre-emptively to
reduce its workforce and invest in new areas for growth, such as AI.
- He
also cited the natural maturation of businesses and a slowdown in cloud
business growth as its customers face pressures due to the economy.
- Dropbox is expected to incur charges of $37M to $42M related to the job cuts.
- The announcement marks the company's first layoffs since January 2021, when it laid off 315 workers.
- At the end of 2022, Dropbox had 3,118 full-time employees worldwide, including 2,583 in the U.S.
