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Cloud storage company Dropbox confirms 500 layoffs

Dropbox

Dropbox is preparing to cut 500 jobs, or 16 percent of its workforce, to keep up with the industry-wide race for artificial intelligence.

CEO Drew Houston blamed the layoffs on slow growth, partly because of the expansion of its business and economic challenges putting pressure on customers.

He said the greater focus on artificial intelligence-powered products will require hiring people with diverse skill sets.

Read More: Disney starts second round of layoffs in $5.5 billion cost-cutting plan

He said: “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. 

“We’ve been bringing in great talent in these areas over the last couple years and we’ll need even more.”

Those affected will get free job placement services and career coaching, one extra week per year of employment, and up to 16 weeks of severance pay.

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The cuts are part of a wider company reduction which includes merging its Core and Document Workflows businesses and some internal team restructuring.

Dropbox intends to hold internal town hall meetings next week to address employee questions.

Houston said: “These transitions are never easy, 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.”

Source: CNBC

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