Dropbox announces 9% workforce cut as CTO Ali Dasdan prepares to exit

Cloud storage company Dropbox plans to cut around 9% of its global workforce, eliminating approximately 200 roles across its Engineering, Product, Design and General and Administrative (G&A) teams.

The restructuring is expected to cost the company between $27 million and $33 million, primarily in severance and related expenses.

According to Reuters, Dropbox disclosed the planned job cuts in a regulatory filing on Wednesday. 

The company said the move was intended to align its investments with key product and growth priorities. 

The announcement comes as Chief Technology Officer Ali Dasdan prepares to step down, effective 18 November.

CTO Ali Dasdan to step down on 18 November

The workforce restructuring coincides with a leadership change, with Dasdan set to leave his role as CTO on 18 November, according to the regulatory filing cited by Reuters.

The departure follows a transition at the top of the company earlier this year. 

Dropbox co-founder and CEO Andrew Houston stepped down in May, with Alkarmi promoted to succeed him.

The latest changes come as the company reassesses its organisational structure and spending priorities, with the planned cuts spanning several core functions, including engineering and product development.

Dropbox expects third-quarter results to meet or exceed guidance

Separately, Dropbox said it expects its third-quarter results to be in line with or above its previous guidance for revenue and adjusted operating margin, according to Reuters.

The company’s latest announcement focuses on reallocating resources towards its long-term priorities, even as it expects to meet or exceed its earlier financial outlook for the quarter.

Dropbox expects restructuring costs to reach $33 million

Dropbox expects to recognise most of the restructuring costs in the fourth quarter, with the remaining expenses to be recorded in 2027, Reuters reported.

As of 31 December, the company had 2,113 full-time employees. 

A 9% reduction based on that figure would affect approximately 190 employees, while Dropbox has separately indicated that around 200 roles will be eliminated.

In an email to employees posted publicly, co-CEO Ashraf Alkarmi said the company was making difficult decisions about where to invest and how to organise its operations to support its long-term strategy, Business Insider reported.

Although Dropbox remains profitable, Alkarmi said the company needed to make difficult choices about spending. 

He added that resources would be concentrated on priorities with the greatest potential to drive customer impact and growth.