SAN FRANCISCO (KRON) -- Dropbox plans to cut dozens of jobs at its San Francisco headquarters. The file-sharing platform will be laying off 57 people at its main office at 50 Hawthorne St. in San Francisco's SoMa neighborhood.
The job cuts were announced earlier this week and are set to take effect on Nov. 18, according to a Worker Adjustment Retraining Notification (WARN). All of the layoffs are permanent.
The layoffs are part of a broader reduction in headcount. Earlier this week, Dropbox co-CEO Ashraf Alkarmi issued a memo announcing the company would be laying off 9% of its global workforce -- about 200 people.
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"Today, we're making difficult choices about where we invest and how we organize Dropbox to achieve product and growth priorities that will matter most for our long-term strategy," Alkarmi said. "As part of these changes, we've made the decision to eliminate about 200 roles across Engineering, Product, Design and G&A teams."
Many of those impacted by the layoffs were apparently let go on Wednesday, the day Alkarmi put out the memo.
Alkarmi also announced that the company's chief technology officer, Ali Dasdan, had departed the company. The co-CEO also said that while Dropbox's business is profitable, the layoffs are part of a "two-year strategy" that "sets a clear direction for growth."
Impacted employees will receive 16 weeks of pay, plus one additional week for each year at the company, Q4 equity vesting, six months of COBRA subsidy, and immigration support for impacted visa holders.
Alkarmi's memo made no mention of artificial intelligence, which has been cited as a factor in many of the thousands of tech layoffs we've seen so far this year. Dropbox stock dropped nearly 5 points this week, despite being up from this time last month.
The stock held a "sell" rating from several analysts on Friday.
