{{articledata.title}}

Dropbox Inc. (NASDAQ: DBX) will reduce its global workforce by about 9%, the cloud storage company disclosed Wednesday, while also announcing the departure of Chief Technology Officer Ali Dasdan.

The cuts are intended to align the company's investments and team structure with its top product and growth priorities and support its long-term strategy, Dropbox stated in a filing with the U.S. Securities and Exchange Commission. The reduction affects roughly 200 roles, according to securities.io. Dropbox had 2,113 full-time employees at the end of 2025.

The company estimates total cash expenditures of $27 million to $33 million, mostly severance payments, employee benefits and related costs. Severance will include a pro rata share of the fiscal 2026 annual employee bonus. Dropbox expects to book $20 million to $25 million in incremental expense, with substantially all of it recognized in the fourth quarter of 2026 and the remainder in 2027.

Dasdan will leave effective Nov. 18. Under his separation agreement, he will receive a pro rata bonus of $515,000 and a lump-sum cash payment of approximately $1.3 million, along with benefits consistent with those provided to other departing employees, the filing showed. Chief Executive Officer Ashraf Alkarmi wrote in an internal email that Dasdan had chosen to move on and would focus on a smooth handover through November.

Alkarmi took over as CEO after co-founder Drew Houston stepped down in May following 19 years at the helm, transitioning to executive chairman.

Dropbox also signaled that its third-quarter revenue, constant currency revenue and non-GAAP operating margin are expected to land in line with or above its previously issued guidance. The company is scheduled to report full quarterly results on Nov. 5.

The latest reduction follows a 20% workforce cut in October 2024, when Dropbox eliminated 528 positions.

Shares of Dropbox (NASDAQ: DBX) are currently trading at $36.59.