Cloud storage and software company Dropbox has announced it will lay off 500 employees, representing about 16% of its global workforce. The move is part of a restructuring effort aimed at freeing up investment for future growth and momentum around artificial intelligence (AI).
According to CEO Drew Houston, the “AI era of computing has finally arrived,” expanding the potential market for the company’s next generation of AI-powered products more rapidly than anticipated. However, the next stage of growth requires a different mix of skill sets, particularly in AI and early-stage product development.
Houston acknowledges the impact this decision will have on affected employees and their families but is ‘determined’ to ensure that Dropbox is at the forefront of the AI era, just as it was at the forefront of the shift to mobile and the cloud. The company has been bringing in great talent in AI and other related areas over the last couple of years, and Houston says they will need even more in the future.
While transitions are never easy, Houston is confident that with machine intelligence, Dropbox will have the tools to reimagine its existing businesses and invent new ones. The move comes as the company looks to streamline operations, improve its bottom line, and position itself for long-term success in the tech industry.
Related: New website for ‘tactical voting’ against the Tories launched