Summary
- Dropbox set to lay off workers for AI
- The company wants to be at the forefront of AI advancement
- Close to 500 employees affected
It was only a matter of time before we started hearing about people losing their jobs due to artificial intelligence, but that reality is now upon us.
On April 27, software company Dropbox announced that it would be laying off around 500 of its employees in a restructuring that will see the laid-off workers replaced with AI.
The company CEO, Drew Houston, called it a difficult decision when he shared the news on his Twitter page, stating that they remained committed to supporting those affected and that their contributions were deeply appreciated.
“In an ideal world, we’d simply shift people from one team to another. And we’ve done that wherever possible. However, our next stage of growth requires a different mix of skill sets, particularly in AI and early-stage product development… The changes we are announcing today, while painful, are necessary for our future.” Houston said in his statement.
At the forefront
Houston said that he wants to ensure that Dropbox is at the forefront of the AI era, just as they shifted to mobile and cloud, and machine intelligence would give them the tools to reimagine their existing business and invent new ones.
The laid-off employees will still be able to receive a minimum of 16 weeks of pay, up to six months of healthcare, and also get to keep company devices for personal use. They will also receive career coaching and job placement support.
AI and loss of jobs
The rapid advancement of AI has seen it begin to replace many jobs currently in the market, and analysts’ projections are not good. According to Goldman Sachs, up to 300 million jobs could be affected by the latest AI wave, which has spawned platforms like ChatGPT.
Already, experts are warning that as revolutionary as the current AI wave is, it is likely going to widen wealth inequality as more people suffer job losses.