Many companies, including those in Silicon Valley, have begun laying off a significant portion of their workforce. Last month, Activision Blizzard laid off a high number of employees, while today Sony pulled the plug on Firewalk Studios. Dropbox, which laid off 500 people in early 2023, is now starting to lay off 20 percent of its workforce.
Dropbox: We will not victimize those who quit
Dropbox laid off about 500 employees at the beginning of 2023 to direct its workforce and money to the artificial intelligence sector. According to the news coming today, the company is laying off 20 percent of its employees, approximately 528 people, mainly for financial reasons. Drew Houston, the CEO of Dropbox, published a blog post on the subject under the name of an update from Drew. Overall, we are designing a flatter, more efficient team structure, while making more significant cuts in areas where we are overinvesting or underperforming, Houston writes. Dropbox’s action may indicate that it wants to focus on the artificial intelligence sector in general.
Dropbox’s reports for the third quarter of this year show that nearly 63 thousand new paid users have arrived. The second quarter of 2024 is recorded as Dropbox’s slowest growth in the company’s history. In the third quarter of the year, the company lost about 20 percent of its share value. CEO Drew Houston says that in the future, Dropbox will provide more information about its 2025 strategy to grow the existing core business and accelerate the introduction of new products. Dropbox says that no one will suffer as a result of the layoffs, and that affected employees will receive sixteen weeks of severance, stock, bonus plan lump sums, approved vacation payments, and immigration counseling for those with work visas.
Sony's shift in gaming strategy: the closure of Concord Studio Firewalk Studios and Neon Koi will create huge implications for Sony.
Last August, the famous game company Ubisoft broke a record and made three mass layoffs in 2024. Likewise, while Microsoft cleaned up its Xbox department, Toshiba and Rockstar Games, the producer of GTA 6, also made mass layoffs this year. While users think that the gaming industry is on shaky ground, Sega has made radical changes in its European department. It is not yet clear how this instability in the technology and gaming industry will be in the future.
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