San Francisco-based Dropbox slashes 20% of workforce
The Dropbox logo displays on a smartphone screen in Athens, Greece, on September 23, 2024. (Photo illustration by Nikolas Kokovlis/NurPhoto via Getty Images)
SAN FRANCISCO - San Francisco-based Dropbox announced on Wednesday that it is slashing 20% of its workforce.
The online file-sharing company is laying off 528 employees amid softer demand and a complex organizational structure.
"We're making more significant cuts in areas where we're over-invested or underperforming while designing a flatter, more efficient team structure overall," said Drew Houston, Dropbox CEO.
The company's latest reduction follows a layoff of 500 employees more than a year earlier, when it shifted focus to its AI division, according to The Verge.
Houston said that in this time of transition, Dropbox is concentrating on developing and introducing new products, including Dash, an AI-powered search tool.
"The steps we’re taking today are necessary to both strengthen our core product and accelerate the growth of our new products," Houston wrote.
Those laid off will receive a severance package including 16 weeks of pay, bonus payments, compensation for approved time off, and six months of health insurance.