Dropbox, Lyft, and Clubhouse are the latest companies that announced plans to lay off employees. The economic slowdown and the rise of AI are cited to be the reasons for recent layoffs.
Employees in tech companies are at the risk of losing their job more than ever. The tech industry is dealing with its greatest exodus, with tens of thousands of employees losing their jobs in 2023, and more is yet to come. Just in April, Meta said it would cut 10,000 jobs in the coming months, and Apple confirmed laying off staff in its corporate retail teams. Lyft, Clubhouse, and Dropbox are also joining the bandwagon.
The cloud storage giant Dropbox announced on April 27 that 500 employees would leave the company. This amount accounts for 16% of Dropbox’s total staff. The CEO, Drew Houston, said the layoffs are because of the slowing growth and the arrival of the “AI era.”
The Dropbox SEC filing reveals that the layoffs would cost the company $37 million to $42 million. Houston added that while Dropbox is profitable, its growth has been slowing due to the economic downturn that pressures both customers and the business.
The AI era of computing is another reason for Dropbox’s layoffs. “We’ve believed for many years that AI will give us new superpowers and completely transform knowledge work,” Houston noted. “And we’ve been building towards this future for a long time, as this year’s product pipeline will demonstrate.”
Lyft is axing 26% of its staff
The ride-sharing app Lyft is another company that confirmed removing 1,072 jobs, which equals 26% of the total staff. This is the second layoff by the company after it fired 13% of its staff in November last year. The affected employees will get severance and benefits valued at $47 million.
Lyft CEO and co-founder Logan Green has recently left the company, and former Amazon executive David Risher replaced him. Risher called for a renewed focus on the “needs of riders and drivers” and ordered remote employees to back to the office.
Clubhouse to layoff its staff again
The social audio app Clubhouse is also firing employees. The app, which exploded in popularity during the pandemic, has lost users’ attention and has declined since the pandemic ended.
The founders, Paul Davison and Rohan Seth sent employees a letter informing them about the decision to scale back the company by 50% and “say goodbye to many talented, dedicated teammates.” Despite the layoffs and reduced usage, Clubhouse founders said, “years of runway remaining.” They also confirmed building “Clubhouse 2.0.”
Dropbox, Lyft, and Clubhouse are the latest companies that announced plans to lay off employees. The economic slowdown and the rise of AI are cited to be the reasons for recent layoffs.
Employees in tech companies are at the risk of losing their job more than ever. The tech industry is dealing with its greatest exodus, with tens of thousands of employees losing their jobs in 2023, and more is yet to come. Just in April, Meta said it would cut 10,000 jobs in the coming months, and Apple confirmed laying off staff in its corporate retail teams. Lyft, Clubhouse, and Dropbox are also joining the bandwagon.
The cloud storage giant Dropbox announced on April 27 that 500 employees would leave the company. This amount accounts for 16% of Dropbox’s total staff. The CEO, Drew Houston, said the layoffs are because of the slowing growth and the arrival of the “AI era.”
The Dropbox SEC filing reveals that the layoffs would cost the company $37 million to $42 million. Houston added that while Dropbox is profitable, its growth has been slowing due to the economic downturn that pressures both customers and the business.
The AI era of computing is another reason for Dropbox’s layoffs. “We’ve believed for many years that AI will give us new superpowers and completely transform knowledge work,” Houston noted. “And we’ve been building towards this future for a long time, as this year’s product pipeline will demonstrate.”
Lyft is axing 26% of its staff
The ride-sharing app Lyft is another company that confirmed removing 1,072 jobs, which equals 26% of the total staff. This is the second layoff by the company after it fired 13% of its staff in November last year. The affected employees will get severance and benefits valued at $47 million.
Lyft CEO and co-founder Logan Green has recently left the company, and former Amazon executive David Risher replaced him. Risher called for a renewed focus on the “needs of riders and drivers” and ordered remote employees to back to the office.
Clubhouse to layoff its staff again
The social audio app Clubhouse is also firing employees. The app, which exploded in popularity during the pandemic, has lost users’ attention and has declined since the pandemic ended.
The founders, Paul Davison and Rohan Seth sent employees a letter informing them about the decision to scale back the company by 50% and “say goodbye to many talented, dedicated teammates.” Despite the layoffs and reduced usage, Clubhouse founders said, “years of runway remaining.” They also confirmed building “Clubhouse 2.0.”