At the end of 2022, the company will have 3,118 full-time employees. (Representative)
Cloud storage provider Dropbox Inc said on Thursday it would slash its global workforce by 16% in a bid to cut costs amid slowing cloud growth, and instead hire new talent to build AI offerings.
San Francisco, California-based Dropbox is the latest tech company to tap AI as Facebook-parent Meta Platforms Inc battles Microsoft Corp for a piece of the fast-growing market with new products and offerings.
Drew Houston, Dropbox’s chief executive, said growth in the company’s core cloud business was slowing as the challenges of the economic downturn put pressure on customers, making some of its profitable investments no longer sustainable.
At the end of 2022, the company will have 3,118 full-time employees, of whom 2,583 are located in the United States.
The company said it had moved some employees from one team to another to focus on its AI projects, but more talent with a different mix of skill sets, particularly in AI and early-stage product development. May need it.
“We’ve been bringing on great talent in these areas over the past few years and we’ll need even more,” Houston said in a memo to employees.
“The AI era of computing has finally arrived … The opportunity lies before us more than ever, but so does our need to act urgently to seize it.”
Houston is also on the board of Meta Platforms, which said Wednesday that AI is helping Facebook and Instagram drive traffic and earn more in ad sales.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)