Cloud storage provider Dropbox has announced plans to reduce its global workforce by 16 percent in order to cut costs. The company aims to counter slowing cloud growth by reallocating resources towards building its AI offerings. Dropbox's CEO, Drew Houston, explained that the company's core cloud business growth has been impacted by economic challenges, making certain investments unsustainable. By downsizing its workforce, Dropbox intends to optimize its operations and profitability. Despite the layoffs, the company has also indicated its intention to hire new talent with expertise in AI and early-stage product development to strengthen its position in the competitive tech market, where major players like Microsoft and Meta Platforms are vying for dominance in the AI sector.