The cuts amount to roughly 16% of the company's workforce.
The layoffs amount to roughly 16% of the company's workforce. In his statement, Houston said the layoffs were a result of two factors. First, he said, the “economic downturn” has put pressure on customers, meaning that “some investments that used to deliver positive returns are no longer sustainable.” Second, he said, the emergence and rapid growth of artificial intelligence technology mean the company will need to bring in more employees with different skill sets.
“In an ideal world, we’d simply shift people from one team to another. And we’ve done that wherever possible. However, our next stage of growth requires a different mix of skill sets, particularly in AI and early-stage product development,” Houston said. “We’ve been bringing in great talent in these areas over the last couple years and we’ll need even more.”
Houston said those impacted by the company's decision will be eligible for 16 weeks of pay. They'll also be able to continue their health care coverage through COBRA for six months and will be able to keep their company cellphones, laptops, tablets and other devices for personal use. Houston said career placement and job coaching services will be available to impacted employees at no cost.
Dropbox is a file-hosting service that creates folders on a user's computer that are then uploaded to the company's servers, allowing users to access those folders and make updates to their material across several devices. It was founded by Houston and Arash Ferdowsi in 2007. Houston said he'd be hosting regional town halls in the coming days to answer questions and outline future plans in more detail.this month.
“The changes we’re announcing today, while painful, are necessary for our future,” Houston said in his statement. “Change is constant in our business, and technology transitions over the last few decades are instructive. As the world moved from physical film to digital photography, or from land lines to wireless communication, or from DVD rentals to streaming, opportunity and disruption went hand-in-hand. Companies that embraced a new reality and took decisive action did well.
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