Following a discount in headcount of round 15% earlier this 12 months in response to the lasting results of the pandemic on the financial system, cloud storage giatn Dropbox has introduced a second spherical of layoffs impacting much more employees.
The corporate announced (opens in new tab) the departure of 500 employees, accounting for round 16% of its already lowered headcount, and it’s blaming AI.
Firm CEO Drew Houston first shared the information with staff in a company-wide e-mail, promising particular person conferences for affected employees with their crew chief and an HR consultant to debate departure.
Dropbox lays off extra employees due to AI
Opposite to fears which have been rising in latest months, throughout what Dropbox’s Houston calls “the AI period,” synthetic intelligence hasn’t changed the roles of tech employees in accordance with the corporate.
Somewhat, AI improvement has meant that the corporate has wanted to amass new expertise whose ability units extra carefully match its up and coming merchandise. Houston defined that employees have already shifted to different departments “wherever doable.”
Affected employees’ severance packages will embrace 16 weeks’ pay plus an extra week for annually labored on the firm, as much as six months of COBRA healthcare within the US and comparable equivalents in different areas, and help for profession transitions. Firm-provided {hardware}, like enterprise laptops and enterprise smartphones, can even stay within the palms of departing employees.
Describing the layoffs as “painful,” Houston believes that the modifications are vital for the platform to guide from the entrance as different firms start to ramp up their AI operations.
With tech layoffs slowing down not too long ago, it’s unclear whether or not a brand new bloom of AI-related layoffs will emerge and the way it will have an effect on employment shifting ahead.