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Dropbox is a familiar name in the cloud storage arena, and was among the first companies to offer this service. The company has been operating since 2008, and facilitates the sharing of digital files between various users.
Since then, Dropbox has been seen to offer a wide variety of file sharing features, but now it seems that, like many other tech companies, they have been forced to reduce their existing workforce.
Drew Houston, CEO of Dropbox said that they will cut 15 percent of their workforce, or about 500 employees.
This is the second time they have reduced the workforce; in 2021, they have laid off a total of 315 workers due to the COVID-19 outbreak at that time.
Interestingly, Dropbx is seen to have recorded revenue of $553 million by the end of 2022, which is a 64 percent increase over the previous year.
Drew Houston reasoned that he expects that this year's revenue projections will decrease, and that this reduction in workforce is to ensure the sustainability of the company.
In the meantime, he also said that artificial intelligence technology is accelerating as the reason why the company is reducing the workforce.
Those affected by the company's decision will be notified via company email, and will be dismissed the next day. Dropbox is expected to pay up to $42 million in damages.