Dropbox cuts its workforce by 20 percent in latest round of layoffs

Oct 31, 2024 12:18 AM - 1 week ago 16638

Dropbox is cutting its workforce by 20 percent coming — laying disconnected 528 group — amid slowing growth for its halfway unreality retention business. The latest information of cuts comes aft Dropbox laid disconnected astir 500 group successful early 2023 to redirect efforts to its AI division.

“We’re making much important cuts successful areas wherever we’re over-invested aliases underperforming while designing a flatter, much businesslike squad building overall,” writes Dropbox CEO Drew Houston successful a blog station titled An update from Drew. At the aforesaid time, Houston mentions that the marketplace is moving towards wherever the institution placed its “biggest bets,” which includes Dropbox’s Dash AI hunt product.

For its second-quarter net this twelvemonth successful August, Dropbox reported an increase of 63,000 paid users 4th complete quarter, which is ray compared to its full 18 million-plus personification base. As reported by TechCrunch, Q2 was Dropbox’s slowest maturation successful institution history, and its shares mislaid much than 20 percent of their worth twelvemonth to day successful August.

Houston says Dropbox will opportunity much astir its 2025 strategy to turn its halfway business and velocity up caller products successful the coming days. Affected labor will get sixteen weeks of severance pay, equity, prize scheme lump sums, payouts of approved leave, and migration consultation for those connected activity visas. Dropbox says astir of the payouts will return spot successful fiscal Q4 2024.

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