Dropbox to Cut 500 Jobs Due to Slowdown in Growth and Economic Headwinds, Says CEO Drew Houston
AI
April 28, 2023
April 27, 2023
On Thursday, Dropbox, the cloud-based file hosting company, announced that it plans to cut 500 jobs, which equates to approximately 16% of its workforce. The announcement came via a blog post from CEO Drew Houston, who cited a slowdown in growth due to both a maturation of the business and economic headwinds affecting its customers.
In addition to economic pressures, Houston said that Dropbox is also focusing on shifting towards artificial intelligence-powered products, which will require a different mix of skill sets. As a result, Dropbox is hiring workers with different expertise in these areas. Houston wrote that Dropbox has been bringing in great talent in these areas over the last couple of years and it will need even more.
The impacted employees will receive free job placement services and career coaching, according to the blog post. They will also receive up to 16 weeks of severance pay and one additional week per year of Dropbox tenure.
Houston wrote that the layoffs are part of a broader company consolidation, as Dropbox merges its Core and Document Workflows businesses and restructures some other internal teams. To answer employee questions, Dropbox plans to host internal town halls tomorrow and next week.
Houston acknowledged that the transition will not be easy for the affected employees, but stated that he is determined to ensure that Dropbox is at the forefront of the AI era, just as it was at the forefront of the shift to mobile and the cloud.
Members of LevelFields received the alert of this event on April 27, 10:32 AM ET
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