Dropbox dismisses 500 people, 16% of all employees, the cause is AI



Dropbox , which has gained popularity as an online storage service, has announced that it will dismiss 500 people, equivalent to about 16% of all employees.

A message from our CEO | Dropbox Blog
https://blog.dropbox.com/topics/company/a-message-from-drew



Dropbox lays off 500 employees, 16% of staff, CEO says due to slowing growth and 'the era of AI' | TechCrunch
https://techcrunch.com/2023/04/27/dropbox-lays-off-500-employees-16-of-staff-ceo-says-due-to-slowing-growth-and-the-era-of- ai/

Dropbox lays off 16% of staff to refocus on AI, as sales growth slows | Computerworld
https://www.computerworld.com/article/3694929/dropbox-lays-off-16-of-staff-to-refocus-on-ai-as-sales-growth-slows.html

Dropbox is laying off 500 people and pivoting to AI - The Verge
https://www.theverge.com/2023/4/27/23700629/dropbox-laying-off-500-people-pivoting-ai

Dropbox layoffs: Company to cut 500 employees
https://www.cnbc.com/2023/04/27/dropbox-layoffs-company-to-cut-500-employees.html

Drew Houston, co-founder and CEO of Dropbox, has announced that he will lay off 500 people, equivalent to about 16% of all employees worldwide. In an open letter to all employees, Houston said, 'First and foremost, I recognize the impact this decision will have on Dropbox employees affected and their families, and I accept full responsibility for this decision and the path that led us here. I would like to,” he says.

Houston said employees affected by the job cuts will be sent invitations to one-on-one interviews with team leaders and members of the human resources team. Also, it seems that time will be set up to say goodbye to employees leaving Dropbox in the near future.




Mr. Houston said about this personnel reduction, ``We have previously reported that Dropbox's business is stable and profitable. Why did you decide to reduce personnel despite this? One is that our business is profitable but growth is slowing, which is due to the natural maturity of our existing business and the headwinds from the recent It is also putting pressure on businesses, as a result of which some investments that previously delivered positive returns are no longer sustainable.Another reason is that the computing AI era has finally arrived. We have long believed that AI will revolutionize us and completely transform knowledge work, and as this year's product pipeline shows, we are building products for this future. The opportunity before us is greater than ever before, but the need for urgent action to seize it is also increasing.Over the past few months, AI has captured the world's collective imagination. 'The potential market for next-generation AI-powered products is expanding faster than expected, but the momentum is warning competitors of many of the same opportunities.'

'The ideal is to move people from one team to another,' Houston said, adding that the company is already working on this as much as possible. It also explains that the next stage of growth will require a mix of different skill sets, especially in AI and early-stage product development, which will require even more talented people in the AI ​​space.



Dropbox explained that employees affected by the layoffs will receive the following support:

Severance and Stock: Affected employees are entitled to 16 weeks of pay, with an additional week of pay for each year of tenure at Dropbox. All affected employees will receive a second quarter stock distribution.
Health Care: All employees have up to 6 months of

COBRA coverage in the US. Equivalent services and modern health support are also available where applicable internationally.
Devices: Affected employees are entitled to retain company devices (phones, tablets, PCs and peripherals) for personal use.
Job Placement: Job placement services and career coaching are available free of charge.

In addition, Dropbox's management will reconsider its strategic priorities and organizational structure as a result of this headcount reduction, and implement a restructuring of the organization based on the principles of sustainable financial growth, efficiency and flexibility to invest in the future. are announcing.

For example, it will integrate the core and document workflow business to seamlessly integrate the customer's primary workflow within the core FSS product. It also explains that it will reorganize its business teams to reflect proportionate adjustments to its supporting product development teams.



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