Despite Being Profitable, Dropbox Cuts 500 Jobs as it Considers AI's Future Effect
fliptop writes:
Dropbox announced Thursday it has laid off 500 employees, approximately 16% of its workforce, with company leaders seeing emerging challenges to its business model:
CEO Drew Houston announced the changes in a blog post on the company's website.
"First and foremost, I want to recognize the impact this decision has on Dropboxers who are affected and their families, and I take full ownership of this decision and the path that led us here," Houston wrote.
[...] "While our business is profitable, our growth has been slowing," Houston said. "Part of this is due to the natural maturation of our existing businesses, but more recently, headwinds from the economic downturn have put pressure on our customers and, in turn, on our business. As a result, some investments that used to deliver positive returns are no longer sustainable."
The company also said advances in AI will affect the company's future.
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