2023-04-28 11:34:17
Online file service Dropbox is laying off five hundred people, or regarding 16 percent of its staff. The company is now turning to AI.
Dropbox talks regarding the difficult economic situation and the turbulent conditions of the past few years. CEO Drew Houston, however, says his company is profitable, but growth is slowing because Dropbox’s industry has matured. This is why some investments did not give the desired return, according to him.
Quite singularly, Houston also refers to the high expectations of AI: ‘For years now, we have believed that AI will give us superpowers and completely transform knowledge work. We have been capitalizing on this for a long time and we will demonstrate it this year with our product channel.’
Still in mid-February, Dropbox announced revenue growth of 5.9 percent with revenue of $598.8 million recorded in its last quarter. And to insist on superior profitability with a net profit of 328.3 million dollars once morest 124.6 million a year earlier, even if this was partly due to a unique tax advantage.
The fact that technology companies are laying off en masse is linked to the rise of AI. Alex Barinka, a journalist with the Bloomberg agency, was once more this week linking the plans of major technology firms to cut their staff and otherwise invest millions in the development of AI. Dropbox now also seems to be jumping on this train, where there are hardly any human passengers.
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