More Tech Layoffs As Cloudflare, Clubhouse (Who?) And Dropbox Reduce Headcount

Key Takeaways

• Cloudflare is sacking 100 underperforming sales people, though they will be replacing them
• Clubhouse is cutting headcount by 50%, as the audio social app looks to be on the way out
• Dropbox is reducing staff numbers by 16%, with their CEO saying that it’s because of AI

It seems like just about every day we hear news of further layoffs in the tech industry. Just this week, we broke news that Amazon’s 9,000 job cuts had begun, which, to the surprise of many, included staff at lucrative Amazon Web Services (AWS) being shown the door.

Despite all this supposed negative news, tech stocks have been soaring so far this year, coming back from a terrible 2022.

Here’s a layoff of some of the more recent layoffs in the tech sector.

For investors, it means the potential to invest big tech giants at much lower valuations, but which companies do you choose? The secret is not to choose at all, but instead to have AI do the heavy lifting for you.

Every week our AI sifts through a huge amount of data and predicts which tech stocks and ETFs are the best option for the coming week. It’s then packaged into our Emerging Tech Kit, and it automatically reruns this analysis and rebalances on a weekly basis.

Download Q.ai today for access to AI-powered investment strategies.

Cloudflare CEO sacks 100 underperforming sales staff

Network and cybersecurity company CEO Matthew Prince didn’t pull any punches in his recent announcement that Cloudflare would be laying off 100 members of staff.

His statement on the recent earnings call was that “As the tide goes out, you get a clear view of who’s not wearing shoes. The macroeconomic environment has gotten harder, and we’re seeing that some on our team aren’t dressed for work. We’ve identified more than 100 people on our sales team who have consistently missed expectations.”

And now, they’re being shown the door.

That’s pretty brutal, but it should also be noted that these aren’t layoffs in the traditional sense, as the plan is to replace these underperformers with new blood that will (hopefully) meet Prince’s expectations.

Lockdown darling Clubhouse cuts 50% of staff

In the early days of the pandemic lockdown, Clubhouse was the new hot item in social media. As quickly as it arrived, it began to disappear as life went back to normal, and we had far less time to sit and talk on audio chat rooms all day.

Details are light as Clubhouse is a private company, but they have announced a reduction in headcount of 50%. Last October, they had approximately 100 employees.

Dropbox drops global headcount by 16%

Growth is slowing for Dropbox, and they’re looking to capitalize on new AI capabilities, as CEO Drew Houston stated “the AI era of computing has finally arrived.”

It’s a major blow for around 500 employees, at a company that managed to go through the entirety of 2022 without laying off any staff.

The bottom line

Layoffs are still coming as tech companies look to operate leaner and meaner, maintaining profit margins in a challenging economic environment.

For investors, it means choosing the right companies to invest in is more important than ever. With the Emerging Tech Kit, you can use the power of AI to make these moves for you, analyzing huge amounts of data and automatically rebalancing on a weekly basis.

Download Q.ai today for access to AI-powered investment strategies.