Dropbox Trims Workforce, Shifts Focus

Dropbox, a well-known file-sharing service, has recently let go of more than 500 employees. This latest round of layoffs comes after a similar move just over a year ago. The company's CEO, Drew Houston, cited several reasons for the job cuts, including a decrease in demand and economic challenges. Dropbox is going through a transition phase, moving from its traditional file syncing and sharing business to newer AI-powered products like Dash. Houston believes the company's current structure and investment levels aren't sustainable during this shift. The layoffs will cost the company around $63 to $68 million, mostly for severance and benefits. Impacted employees will receive pay and other benefits based on their tenure. Despite these changes, Dropbox's revenue grew by 1. 9% in the second quarter of 2024, a record low for the company.