Dropbox lays off 16% of staff to refocus on AI, as sales growth slows
Facing a slowdown in revenue growth, cloud storage company Dropbox announced today that it is laying off 500 employees, or 16% of its workforce, mainly in order to be able to hire staff with AI expertise.
Although revenue for the fourth quarter last year — the last quarter for which Dropbox reported earnings — was up by 5.8% year over year to $598.8 million, the company has experienced a slowdown in sales recently. Meanwhile, in order to stay competive, the company needs to ramp up its AI capabilities.