Cloud storage supplier Dropbox mentioned on Thursday it might cut back its world workforce by 16 p.c to reduce prices amid slowing cloud development, and as an alternative rent new expertise to construct its AI choices.
San Francisco, California-based Dropbox is the most recent tech firm to faucet AI as Big Tech gamers from Microsoft to Facebook-parent Meta Platforms battle for a slice of the fast-growing market with new merchandise and choices.
Dropbox’s chief govt officer, Drew Houston, mentioned the corporate’s core cloud enterprise development was slowing as challenges from the financial downturn put stress on clients, making a few of its worthwhile investments not sustainable.
At the top of 2022, the corporate had 3,118 full-time staff, of which 2,583 have been situated within the United States.
The firm mentioned it had shifted some staff from one crew to one other to concentrate on its AI tasks, however would want extra expertise with a unique mixture of talent units, significantly in AI and early-stage product improvement.
“We’ve been bringing in great talent in these areas over the last couple years and we’ll need even more,” Houston mentioned in a memo to employees.
“The AI era of computing has finally arrived … The opportunity in front of us is greater than ever, but so is our need to act with urgency to seize it.”
Houston can also be on the board of Meta Platforms, which mentioned on Wednesday AI was serving to it enhance site visitors to Facebook and Instagram and earn extra in advert gross sales.
© Thomson Reuters 2023
