Today, Dropbox, the biggest cloud storage service in the world, announced layoffs. The company today said it would be letting go of 16% of its staff, or about 500 people, due to slow growth and, according to CEO Drew Houston, the fact that the AI era of computing has finally arrived.
These appear to be the business’s first layoffs since 315 employees were fired in January 2021 as a result of the COVID-19 outbreak. Houston informed the staff of the most recent cull in a memo in addition to an SEC filing.
The company would incur between $37 million and $42 million in layoff-related costs, as per the SEC filing, which will be disclosed in Q2. When the first quarter’s results are announced on Thursday, May 4, they will match or possibly exceed expectations, said Houston.
Ironically, Houston stated that despite the great results and the fact that Dropbox is profitable, the company has decided to take a precautionary move to reduce employment and invest in new areas in order to keep up with the rate of change.
According to Houston, affected employees will be notified today and their work will be completed by tomorrow. The company had 3,125 workers before the relocation took place today. According to the Layoffs.fyi tracker, approximately 620 technology companies have laid off more than 184,000 workers in 2023.