Dropbox will lay off 16% of its workforce due to slow growth

Cloud storage giant Dropbox announced on 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 the decision.

“If you are impacted, you will be sent a calendar invite for a one-on-one time with a leader of your team and a member of the People team to go through the details of your departure, package, and ask someone You may have questions,” he informed.

Houston stated that although the business is profitable, “our growth has been slow”.

“Part of this is due to the natural maturity of our existing businesses, but more recently, 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 investments that have given positive returns are no longer sustainable, the company informed.

In January 2021, Dropbox laid off 315 employees amid the COVID-19 pandemic.

Affected employees will be eligible for 16 weeks of pay, plus one additional week of pay for each completed year of tenure at Dropbox.

“All affected employees will receive their Q2 equity vest. All employees will be eligible for up to six months of COBRA in the US, and similar equivalents where applicable internationally, as well as advanced health support,” the company said.

Affected employees will be eligible to keep company equipment (phones, tablets, laptops and accessories) for personal use.

“These changes are never easy, but I am determined to ensure that Dropbox is at the forefront of the AI ​​era, just as we were at the forefront of change in mobile and cloud. We will need all hands on deck Because machine intelligence gives us the tools to re-imagine our existing businesses and innovate,” said the CEO.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)