Despite being profitable, Dropbox cuts 500 jobs when considering future effect of AI – UPI.com – Thelocalreport.in

Dropbox has laid off 500 employees, about 16% of its workforce, according to a blog post on the company’s website Thursday from CEO Drew Houston. File photo by Mauritz Antin/EPA-EFE

“First, I want to acknowledge the impact this decision has on the affected Dropbox users and their families, and I fully endorse this decision and the path that has led us here.” houston wrote.

While Dropbox remains profitable, the company’s leadership sees emerging challenges to your business model.

“While our business is profitable, our growth has slowed,” Houston said. “Part of this is due to the natural maturation of our existing businesses, but more recently, the headwinds of the economic downturn have put pressure on our customers and, in turn, on our business. As a result, some investments that used to generate positive returns are no longer sustainable.”

The company also said that advances in AI will affect the future of the company.

“We have believed for many years that AI will give us new superpowers and completely transform knowledge work. And we’ve been building toward this future for a long time, as this year’s product portfolio will demonstrate,” said Houston.

A Securities and Exchange Commission presentation reveals that the company expects to spend between $37 and $42 million.