Dropbox plans to reduce its global workforce by around 9 per cent as the cloud storage company realigns spending with its product development and growth priorities. The company has also announced that chief technology officer Ali Dasdan will step down from his role on November 18.
The job cuts were disclosed in a regulatory filing on October 28. Dropbox expects the restructuring to cost between $27 million and $33 million, primarily covering severance payments and related expenses. Most of these costs are expected to be recognised in the fourth quarter of 2026, with the remainder recorded in 2027.
Dropbox had 2,113 full-time employees as of December 31, according to the filing. The planned reduction would therefore affect a significant portion of its workforce, although the company has not disclosed the exact number of positions to be eliminated.
The latest restructuring follows a leadership change earlier this year. Co-founder and chief executive officer Andrew Houston stepped down in May, with company insider Ashraf Alkarmi appointed as his successor.
Despite the planned workforce reduction, Dropbox expects its third-quarter results to meet or exceed its earlier guidance for revenue and adjusted operating margin.
The move reflects the company’s efforts to align its workforce and spending with its evolving business priorities. Further details on the roles affected and the implementation timeline have not been disclosed.
