Dropbox is shedding 20% of its international workforce, the equal of 528 roles, CEO Drew Houston introduced Wednesday in a word to workers.

The corporate is in a “transitional interval” as its file sync and share enterprise and its Sprint artificial-intelligence search characteristic mature, Houston wrote.

“Navigating this transition whereas sustaining our present construction and funding ranges is now not sustainable,” he mentioned in his word.

The transfer follows a 16% reduce to Dropbox’s workforce in April 2023, which affected 500 staffers. On the time, Houston wrote that the cuts had been because of slowing progress, financial headwinds and the necessity to make investments extra sources and head rely into the more and more aggressive AI race.

Dropbox will likely be making cuts to the components of its enterprise the place the corporate is “over-invested or underperforming” whereas working towards a “flatter, extra environment friendly” group construction, Houston wrote.

“We proceed to see softening demand and macro headwinds in our core enterprise,” Houston wrote. “However exterior components are solely a part of the story. We have heard from a lot of you that our organizational construction has turn into overly advanced, with extra layers of administration slowing us down.”

Affected staff will obtain 16 weeks of pay, beginning Wednesday, with one further week of pay for every accomplished tenure yr on the firm.

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