Dropbox lays off 16% of its workforce due to slowing growth
Cloud storage giant Dropbox announced Thursday that it is laying off 16 percent of its workforce, or about 500 employees, due to slowing growth.
Dropbox CEO Drew Houston said he takes full ownership of this decision.
“If you’ve been affected, you’ll be sent a calendar invite for a one-on-one meeting with your team leader and a member of the People team to go over your departure, package details and ask any questions you may have,” she said.
Houston said that while the business is profitable, “our growth has slowed down.”
“Partly this is due to the natural maturation of our existing businesses, but recent headwinds from the economic downturn have put pressure on our customers and in turn on our business,” he said.
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As a result, some of the investments that previously produced positive returns are no longer sustainable, the company said.
In January 2021, Dropbox laid off 315 employees due to the Covid-19 pandemic.
Affected employees are entitled to 16 weeks of pay and one additional week of pay for each completed year of Dropbox.
“All affected employees will receive second-quarter stock vests. All employees will be eligible for up to six months of COBRA coverage in the U.S. and equivalent coverage internationally, as well as Modern Health coverage,” the company said.
Affected employees may keep company devices (phones, tablets, laptops and peripherals) for personal use.
“These transitions are never easy, but I’m determined to make sure Dropbox is at the forefront of the AI era, just as we were at the forefront of the mobile and cloud transition. We need all hands on deck as AI gives us the tools to redesign our existing businesses and invent new ones.” the CEO said.
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