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Administrative strikes against technology companies continue, regardless of their size or influence. cloud storage company Dropbox and the audio community club houserecently carried out mass layoffs of employees.
CEO Dropbox, Drew Houston, announced that the company would lay off 500 employees, representing 16% of its workforce. On the other hand, the founders club housePaul Davison and Roen Seth said in a memo that they will lay off over half of their employees, which is a relative number as they do not have access to the official number of employees.
These layoffs add to a tough week for San Francisco businesses, including non-tech businesses: Gap Inc. announced 1,800 job cuts, and First Republic Bank plans to lay off 20-25% of its workforce, which is about 1,800 people. Experts note that the bank is in danger of collapse.
Dropbox CEO said that “Our next phase of growth requires a different mix of skills, especially in AI and early-stage product development. We have been attracting talent in these areas in recent years and we will need more.” Houston mentioned the rise of artificial intelligence as one of the main reasons for restructuring Dropbox and capitalizing on the industry.
Dropbox slashed its office space due to remote work and posted a $175.2 million loss in February related to a sharp downturn in the Bay Area housing market. The company tried to sublease much of its Mission Bay headquarters, but demand was lower than expected.
San Francisco’s unemployment rate, a lagging indicator, rose to 3% in March, slightly up from 2.9% in February and one percentage point from 2% in December.
Clubhouse’s popularity has skyrocketed during the pandemic as people have sought to communicate safely. Celebrities like Oprah Winfrey and tech moguls like Elon Musk and Mark Zuckerberg emerged and millions of users signed up.
“But as the world has opened up since COVID, it has become more difficult for many people to find their friends at the Clubhouse and fit long conversations into their daily lives. To find its role in the world, the product must evolve. It requires a period of change, Davison and Seth said.
The founders of Clubhouse explained that the current size of the company made communication and coordination difficult, and that the team needed to be reduced to a product-focused group. In addition, they noted that remote work, one of the trends that helped make Clubhouse popular in the first place, has also become a hindrance.
Source: RPP
I am Ben Stock, a passionate and experienced digital journalist working in the news industry. At the Buna Times, I write articles covering technology developments and related topics. I strive to provide reliable information that my readers can trust. My research skills are top-notch, as well as my ability to craft engaging stories on timely topics with clarity and accuracy.