Cloud storage giant Dropbox joined the latest layoffs, announcing that it will reduce its manpower by 16%, equivalent to 500 employees. This is also Dropbox’s first layoff since January 2021, when the company laid off 315 employees during the epidemic.
SEC filings show that Dropbox will incur charges of about $37 million to $42 million due to layoffs. Dropbox said that it will announce its first-quarter financial report on 5/4, and its performance may be better than expected. But even so, Dropbox still had to lay off workers.
Drew Houston, chief executive of Dropbox, said that although the business is profitable, the company’s growth continues to slow down, in part because of the maturity of existing businesses.
This, combined with the recent economic downturn that has put pressure on customers, has further added to the pressure on Dropbox’s business.
Investments with some positive returns are no longer sustainable, so companies opt to keep up with the pace of change by cutting jobs and investing in new areas.
In addition, artificial intelligence is also one of the elements.
Houston notes that the age of AI computing has finally arrived, which will give companies new superpowers and revolutionize knowledge work.
The company has been working hard for this future for a long time, and this year’s product line will prove it, and relevant professionals will also be hired.
