In an effort to decrease costs in light of the slowing growth of the cloud market, Dropbox has stated that it will be decreasing its global staff by 16%. The San Francisco-based company will bring on new hires with the expertise needed to create and deploy AI-powered solutions. By the end of 2022, Dropbox employed 3,118 people full-time. This translates to about 500 job losses in the cloud storage industry.
Drew Houston, CEO of Dropbox, wrote a statement to the company's workforce stating that the company's primary cloud business growth was slowing due to difficulties caused by the recession's effect on customers. Its profitable investments were consequently no longer sustainable in some cases.
In addition to making layoffs, Dropbox is moving certain workers from one team to another so they can concentrate on their AI projects. They will, meanwhile, also employ additional personnel to create AI tools.
According to Houston, Dropbox has a better chance than ever to take advantage of this opportunity, but it also means that quick action is required to do so. The AI era of computing is finally here, he continued, and Dropbox is eager to capitalise on the rapidly expanding industry with new products and offers.
The most recent software company in a long line to have laid off a sizable chunk of its workers is Dropbox. Since the end of last year, Microsoft, Meta, Google, and Amazon have all conducted layoffs. The emphasis on artificial intelligence is a further development in the tech industry. With significant investments in OpenAI, the company that created ChatGPT and Dall-E, Microsoft is outpacing the competition.
Google is also developing Bard AI, which is now being tested in a few markets and will likely soon be used elsewhere. On Wednesday, Meta added that AI was assisting them in increasing traffic to Facebook and Instagram and generating more revenue from ad sales.
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