Dropbox announces reduction of global workforce by about 9%

Synopsis

In a significant move, Dropbox Inc will reduce its global workforce by roughly 9%, expecting to incur extra costs of $20 million to $25 million. The cash costs linked to this workforce cut are estimated to be between $27 million and $33 million.

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File hosting service Dropbox said on Wednesday it would cut its global workforce by about 9% to align investments with its top product and growth priorities, according to a regulatory filing.

Here are some more details:

• The cloud storage company estimates the layoffs will cost $27 million to $33 million, primarily in severance and related costs

• Dropbox expects to recognize most of the costs in the fourth quarter, with the remainder in 2027

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

• Chief Technology Officer Ali Dasdan will also step down, effective November 18, the filing said

• CEO and co-founder Andrew Houston stepped down in May, with insider Ashraf Alkarmi promoted to succeed him

• Separately, Dropbox said it expects third-quarter results to be in line with or above its prior guidance for revenue and adjusted operating margin Add as a Reliable and Trusted News Source Add Now!

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