Dropbox to Cut 16% of Workforce and Hire AI Experts for Future Growth
- ByStartupStory | April 28, 2023
Dropbox has revealed plans to reduce its workforce by 16% as part of a cost-cutting strategy due to sluggish growth in the cloud industry. The company, which is based in San Francisco, will focus on hiring individuals with expertise in developing and implementing AI-powered products. As of the end of 2022, Dropbox had 3,118 full-time employees, resulting in roughly 500 job losses in its cloud storage sector.
Drew Houston, CEO of Dropbox, conveyed in an internal memo to employees that the company’s core cloud business growth had slowed down due to the economic downturn, which posed challenges for its customers. As a result, certain profitable investments had become unsustainable. Along with layoffs, Dropbox intends to move some of its staff from one team to another to prioritize AI projects. Despite this, the company is also planning to recruit more employees with expertise in developing AI tools.
According to Houston, Dropbox has a tremendous opportunity ahead, but it also needs to act quickly to take advantage of it. He further stated that the AI computing era has arrived, and Dropbox is eager to capitalize on this rapidly expanding market by introducing new products and services.
Dropbox has joined a growing number of technology companies that have downsized their workforce. Major tech players such as Microsoft, Meta, Google, and Amazon have all undertaken layoffs since late 2022. Another noticeable trend in the tech industry is the emphasis on artificial intelligence. Microsoft is currently at the forefront of this movement, making significant investments in OpenAI, the organization responsible for notable projects such as ChatGPT and Dall-E.
Furthermore, Google is actively developing Bard AI, which is currently undergoing trials in specific regions and will be introduced in other locations in the near future. Additionally, Meta has declared that AI technology is enhancing its ability to drive traffic to Facebook and Instagram, as well as increasing advertising revenues.
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