Subj : Dropbox blames AI as it lays off hundreds of workers
To   : All
From : TechnologyDaily
Date : Fri Apr 28 2023 10:30:03

Dropbox blames AI as it lays off hundreds of workers

Date:
Fri, 28 Apr 2023 09:12:17 +0000

Description:
AI-related layoffs got rid of more workers than economy-related layoffs: is 
this a trend that will continue?

FULL STORY
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Following a reduction in headcount of around 15% earlier this year in 
response to the lasting effects of the pandemic on the economy, cloud storage 
giatn Dropbox has announced a second round of layoffs impacting even more 
workers. 

The company announced the departure of 500 workers, accounting for around 16% 
of its already reduced headcount, and its blaming AI. 

Company CEO Drew Houston first shared the news with employees in a 
company-wide email, promising individual meetings for affected workers with 
their team leader and an HR representative to discuss departure. Dropbox lays 
off more workers because of AI 

Contrary to fears that have been growing in recent months, during what 
Dropboxs Houston calls the AI era, artificial intelligence hasnt replaced the 
jobs of tech workers according to the company. 

Rather, AI development has meant that the company has needed to acquire new 
talent whose skill sets more closely match its up and coming products. 
Houston explained that workers have already shifted to other departments 
wherever possible. Read more 

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 > How mass layoffs will create some major security vulnerabilities 


 > Dropbox wants to cut down on the number of apps you use at work 

Affected workers severance packages will include 16 weeks pay plus an 
additional week for each year worked at the company, up to six months of 
COBRA healthcare in the US and similar equivalents in other regions, and 
support for career transitions. Company-provided hardware, like business 
laptops and business smartphones , will also remain in the hands of departing 
workers. 

Describing the layoffs as painful, Houston believes that the changes are 
necessary for the platform to lead from the front as other companies begin to 
ramp up their AI operations. 

With tech layoffs slowing down recently, its unclear whether a new bloom of 
AI-related layoffs will emerge and how this will affect employment moving 
forward. Looking to use AI in your role? Here are the best AI writers



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Link to news story:
https://www.techradar.com/news/dropbox-blames-ai-as-it-lays-off-hundreds-of-wo
rkers


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