Dropbox Cutting 16% of Staff, Shifting Focus to AI
Hundreds of jobs are on the chopping block at Dropbox as the tech company sets its sights on artificial intelligence (AI).
In a recent memo to staff, CEO Drew Houston said he made the “difficult decision” to lay off 500 employees, or approximately 16 per cent of the company’s global workforce.
Shared the difficult decision to reduce our workforce with the Dropbox team today. We’re committed to supporting those affected, and I’m deeply grateful for their contributions. https://t.co/Q1F8XaAof3
— Drew Houston (@drewhouston) April 27, 2023
“In an ideal world, we’d simply shift people from one team to another. And we’ve done that wherever possible,” Houston said.
“However, our next stage of growth requires a different mix of skill sets, particularly in AI and early-stage product development. We’ve been bringing in great talent in these areas over the last couple years and we’ll need even more.”
The reduction comes as Dropbox takes steps to streamline its business, including consolidating its Core and Document Workflows businesses.
“These transitions are never easy, but I’m determined to ensure that Dropbox is at the forefront of the AI era, just as we were at the forefront of the shift to mobile and the cloud,” Houston added.
“We’ll need all hands on deck as machine intelligence gives us the tools to reimagine our existing businesses and invent new ones.”
According to LinkedIn, the company employs a global workforce of more than 3,700 people — with nearly 130 staff members located in Canada.
Impact on Canadian staff
Dropbox didn’t disclose how many Canadian employees are affected by the latest round of cuts.
While the company doesn’t have a Canadian headquarters, it has workers in major cities across the country, including Toronto and Vancouver.
If you’re a non-unionized employee, check out our DropBox Layoffs guide.
You can also use our free Pocket Employment Lawyer tool for real-time insights.
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About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
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