The cuts come as Dropbox focuses on its maturing File Sync and Share business and products like its AI-powered work assistant, Dash.
Drew Houston emphasized that navigating this transition with the current structure is no longer sustainable due to 'softening demand and macro headwinds' affecting the core business.
Houston acknowledged that feedback from employees highlighted the need to address an overly complex organizational structure with excess layers of management that slow down operations.
With these layoffs, Dropbox aims to target over-invested or underperforming areas while creating a flatter organizational structure to enhance speed and efficiency.
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