Dropbox announced it is laying off 20% of its workforce, affecting 528 employees, due to a “transitional period” for the company, as it seeks to adapt its file sync and share services alongside its AI search feature Dash, CNBC reports.
Dropbox CEO Drew Houston noted that maintaining the current structure and investment levels has become unsustainable amid slowing growth and economic challenges. The company aims to streamline operations by cutting areas where it is over-invested or underperforming and to create a “flatter, more efficient” team structure. Affected employees will receive 16 weeks of pay plus one additional week for each year of tenure at the company.
This decision follows a previous layoff of 16% of the workforce in April 2023, which affected 500 employees, due to slowing growth and the need to invest more in the competitive AI sector.
