Dropbox is laying off 20 % of its labor, eliminating a full of 528 work, the software firm said Wednesday.
In a letter to employees, CEO , Drew Houston , told people the company is in a” intermediate time” as they work to “build our second stage of expansion”.
While I’m proud of the progress we’ve made over the past few years, Houston wrote that in some areas of the business, we’re still not performing as well as our clients would like or performing in line with business standards, according to Houston. So we’re designing a dazzle, more effective staff structure overall while making more significant reductions in areas where we’re overinvesting or underperforming.
The business  , cut 500 tasks in a previous round of layoffs , in , April 2023.
Employees who are terminated from their jobs as a result of the most recent cuts will get 16 weeks of spend plus an additional week for each year they work for the company.
Houston stated that he would be holding some town hall meetings to talk about the issue and the company’s future programs, as well as how artificial intelligence’s purchase in its file-sharing company refers to its business.
” I know this is very hard and unexpected news”, he wrote. ” To all leaving Dropbox, I’m deeply grateful for all you’ve done for our business and our clients”.
Dropbox , stock has fallen , 9 % in the year to date, according to Market Watch.
The cuts are the most recent in a growing trend in technology since 2020. Following a pandemic-fueled getting spree, which resulted in hundreds of thousands of jobs being cut, the industry as a whole has gradually decreased over the past few years.
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