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In a letter to staff, CEO Drew Houston said the cuts will be in areas where the company has ‘over-invested’.
File storage platform Dropbox is cutting 20pc of its workforce, or 528 employees, the company announced yesterday (30 October).
In a memo to staff, CEO Drew Houston said the company is in a “transitional period” and that maintaining the current structure and investment levels is no longer sustainable.
“We continue to see softening demand and macro headwinds in our core business,” he said. “In some parts of the business, we’re still not delivering at the level our customers deserve or performing in line with industry peers.”
He added that the cuts will be in areas where Dropbox has “over-invested” or is “underperforming”, while also designing a flatter, more efficient team structure overall.
“The steps we’re taking today are necessary to both strengthen our core product and accelerate the growth of our new products. We’ll share more about our 2025 strategy in the days ahead.”
Dropbox employs hundreds of staff in Ireland, predominately through its Dublin office.
SiliconRepublic.com reached out to Dropbox for more details about the jobs affected and whether or not the cuts would include any of its Irish workforce.
The layoffs come more than a year after the company laid off 500 employees to focus on AI. At the time, Houston said some investments that used to deliver positive returns are no longer sustainable.
Months after those layoffs in 2023, the company dropped a trio of AI-powered tools, solidifying its focus on the sector.
Staff cuts have continued to plague the tech sector as companies refocus their efforts on the growing AI arms race, along with other restructuring reasons. In the last three months alone, thousands of jobs have been cut across Intel, Cisco, WeTransfer and Microsoft.
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