Dropbox lays off 500 people to invest in AI – IT Pro – News

Cloud storage and file sharing service Dropbox is shedding 16 % of its workforce to put money into AI. These investments require totally different personnel than the staff who are actually being laid off. The corporate additionally says it’s shedding individuals as a result of progress is leveling off.

Dropbox says she has been eager to work for a very long time to a future with extra AI features, equivalent to rearranging calendars or creating to-do lists. In latest months, nonetheless, there was a larger deal with AI within the tech world, because of the emergence of generative AI companies equivalent to ChatGPT. Due to this fact, the corporate wants to maneuver quicker to growing AI companies, writes Dropbox.

“In a great world, you would shift individuals from one group to a different,” the corporate says, however this is not doable for all workers. The brand new deal with AI primarily requires AIs early stage product growthbuilders wanted. To have the ability to rent these individuals and make investments, the corporate now has to put off about 5 hundred individuals.

CEO Drew Houston emphasizes that Dropbox continues to be worthwhile and rising, but in addition says that progress is leveling off. That is partly because of the present financial scenario. On account of this financial headwind, sure investments made earlier would additionally not be sustainable. That is why the corporate needs to cut back investments in sure elements of Dropbox, with out going into particulars.