Dropbox To Lay Off About 16% Of Its Workforce Due To Slow Growth

Cloud storage giant Dropbox on April 27 declared that it will be decreasing its global workforce by nearly 16% in a cost-cutting move due to slow growth, according to a blog post on the company's website.

Dropbox CEO Drew Houston wrote in the blog post that the company has been reckoning with slowing growth, in part due to a maturation of its business, but also as a result of economic headwinds that are pressuring its customers, as per a report published in CNBC website.

The CEO also stated that Dropbox is also facing an urgency to focus more on artificial intelligence-powered products, and doing so will require hiring workers with different skill sets, added the CNBC report.

"In an ideal world, we'd simply shift people from one team to another," Houston wrote. "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."

Impacted employees will receive free job placement services and career coaching, according to the blog post, along with up to 16 weeks of severance pay and one additional week per year of Dropbox tenure, stated the CNBC report.