Dropbox cuts its global workforce by 20%, resulting in the elimination of over 500 positions.

• Drew Houston, CEO of Dropbox, announced that the company is laying off 20% of its global workforce, which amounts to 528 roles.
• Dropbox is planning to streamline its business by cutting back on underperforming or over-invested areas in order to create a more efficient team structure, as stated by Houston.
• In April 2023, Dropbox experienced a 16% reduction in its workforce, resulting in the layoff of 500 employees.

On Wednesday, CEO Drew Houston announced that the company is laying off 20% of its global workforce, which amounts to 528 roles.

Houston wrote that the company is in a "transitional period" as its file sync and share business and its Dash artificial-intelligence search feature mature.

He stated in his note that it is no longer feasible to manage this transition while maintaining our current framework and financial commitments.

In April 2023, Dropbox experienced a 16% reduction in its workforce, resulting in the layoff of 500 employees. Houston attributed the cuts to a slowing growth rate, economic challenges, and the need to allocate more resources and personnel to the intensifying competition in the AI industry.

Dropbox is planning to streamline its business by cutting back on underperforming or over-invested areas in order to create a more efficient team structure, as stated by Houston.

"Although we are experiencing softening demand and macro headwinds in our core business, external factors are just one aspect of the issue. We have received feedback from many of you that our organizational structure has become overly complex, with too many layers of management slowing us down."

Employees affected by the change will receive 16 weeks of pay, starting Wednesday, with an additional week of pay for each completed decade of service at the company.

WATCH: How working for Big Tech lost 'dream job' status