Dropbox is laying off 500 employees, representing about 16 per cent of the company’s global workforce as part of a plan to become more AI-focused.
CEO Drew Houston said that while the business was profitable, thanks to humans, its growth has been slowing.
He said that the AI era of computing had arrived and there was an opportunity if the business was quick enough to seize it.
“Over the last few months, AI has captured the world’s collective imagination, expanding the potential market for our next generation of AI-powered products more rapidly than any of us could have anticipated.”
In an ideal world, Houston said Dropbox would simply shift employees from one year to another.
However, he said its “next stage of growth requires a different mix of skill sets, particularly in AI and early-stage product development. We’ve been bringing in great talent in these areas over the last couple years and we’ll need even more.”
Houston said: “I want to recognise the impact this decision has on Dropboxers who are affected and their families, and I take full ownership of this decision and the path that led us here…. but I’m determined to ensure that Dropbox is at the forefront of the AI era, just as we were at the forefront of the shift to mobile and the cloud. We’ll need all hands on deck as machine intelligence gives us the tools to reimagine our existing businesses and invent new ones.”
In addition to its shift towards AI innovation, Houston also said the 500 layoffs are, in part, due to the “economic downturn,” which has put pressure on Dropbox customers.
