Dropbox closing Israel R&D center as part of global cutbacks
Dropbox closing Israel R&D center as part of global cutbacks
The U.S. cloud storage provider is estimated to have employed around 50 people in Israel and it will be laying off all of them as part of a 16% reduction in its global workforce
Dropbox is closing its office in Israel and laying off its entire workforce. The U.S. cloud storage provider is estimated to have employed around 50 people in Israel. In all, Dropbox said it would reduce its global workforce by 16% as it tries to cut costs amid slowing cloud growth.
The San Francisco, California-based company said that it instead plans to hire new talent to build its AI offerings.
Dropbox's chief executive officer, Drew Houston, said the company's core cloud business growth was slowing as challenges from the economic downturn put pressure on customers, making some of its profitable investments no longer sustainable.
At the end of 2022, the company had 3,118 full-time employees, of which 2,583 were located in the United States.
The company said it had shifted some employees from one team to another to focus on its AI projects, but would need more talent with a different mix of skill sets, particularly in AI and early-stage product development.
"We've been bringing in great talent in these areas over the last couple years and we'll need even more," Houston said in a memo to staff.
"The AI era of computing has finally arrived ... The opportunity in front of us is greater than ever, but so is our need to act with urgency to seize it."
