Drew Houston, co-founder and CEO of Dropbox, speaks at CNBC’s @Work conference on November 4, 2019 in San Francisco.

Irwin Nevadar | CNBC

Dropbox CEO Drew Houston announced in a note to staff on Wednesday that he would cut 20 percent of his global workforce, which equates to 528 roles.

The company is in a “transition period” as its file syncing and sharing business and its Dash artificial intelligence search feature mature, Houston said. wrote.

“Navigating this transition while maintaining our current structure and investment levels is no longer sustainable,” he said in his note.

The move follows a 16 percent reduction in Dropbox’s workforce. April 2023This affected 500 employees. At the time, Houston wrote that the cuts were attributed to a slowdown in development, economic hardship and the need to invest more resources and headcount in an increasingly competitive AI race.

Houston wrote that Dropbox will cut parts of its business where the company is “over-investing or under-performing” while working toward an “agile, more efficient” team structure.

“We continue to see declining demand and macro headwinds in our core business,” Houston wrote. “But external factors are only part of the story. We’ve heard from many of you that our organizational structure has become overly complex, that extra layers of management have slowed us down.”

Affected employees will receive 16 weeks of pay beginning Wednesday, with one additional week of pay for each full year of service with the company.

Look: How Working for Big Tech Lost Its ‘Dream Job’ Status



Source link