Dropbox is set to cut about 20% of its workforce – 528 layoffs – making it the second round of layoffs for the company just this year.

CEO Drew Houston announced the newest round of job cuts, saying they are a part of the a transitional period for the company as it seeks to centre itself around its AI tool, Dash for Business, among other products.

“Our FSS business has matured, and we’ve been working to build our next phase of growth with products like Dash. However, navigating this transition while maintaining our current structure and investment levels is no longer sustainable,” the Dropbox CEO said.

Huston went on to say that the DropBox is not hitting its targets in line with industry competitors, or delivering the level it thinks its company deserves.

Internal management issues, which staff have complained about as slowing down progress with obtuse organisational interference, were also cited as reasons for the latest round of cuts.

“So we’re making more significant cuts in areas where we’re over-invested or underperforming while designing a flatter, more efficient team structure overall,” he said.

Affected staff will be given 16 weeks of pay, with increased pay offers based on completed years of tenure at the company, and lump sums for those on the corporate bonus plan.

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Just last year, Dropbox cut 16% of its workforce, then amounting to around 500 staff members, citing similar reasons.

The company was underperforming then as well, and had revealed its intent to recentre its focus on AI-related tools and products.

Houston also spoke of the changing needs around AI skills in the industry, explaining their current stage required a different array of AI skills.

The announcement is just another in a growing pool of major tech layoffs, a pattern that has continued on from 2022.

Hundreds of jobs were cut at Google earlier this year, with more layoffs at Amazon’s cloud sector, and across Meta’s various platforms.