File-hosting and cloud-storage platform Dropbox said on Wednesday (October 28) that it plans to cut roughly 9% of its global workforce as part of an effort to align corporate investments with its primary product and growth objectives. According to a regulatory filing, the restructuring will also see an executive departure at the firm, with chief technology officer (CTO) Ali Dasdan set to step down from his post effective November 18.Dropbox disclosed the headcount reduction details, saying that the company estimates the workforce reduction will generate between $27 million and $33 million in expenses, primarily covering severance payments and associated termination costs. The company is reported to have 2,113 full-time employees on its payroll as of December 31, news agency Reuters reported.The departure of CTO Ali Dasdan marks another significant leadership transition for the cloud platform within the year. Earlier in May, co-founder and CEO Andrew Houston stepped down from his role, paving the way for company insider Ashraf Alkarmi to take the helm as CEO.
Read co-CEO Ashraf Alkarmi ‘s memo to employees
Today, co-CEO Ashraf Alkarmi shared the difficult news with employees that we’re reducing our global workforce. His email is below.Hi everyone,Today, we’re making difficult choices about where we invest and how we organize Dropbox to achieve the product and growth priorities that will matter most for our long-term strategy. As part of these changes, we’ve made the decision to eliminate about 200 roles across Engineering, Product, Design, and G&A teams (approximately 9% of our global workforce). For most impacted Dropboxers, today will be their last day.S-team and I take full ownership of this decision and recognize that these colleagues have made meaningful contributions to Dropbox, our products, our customers, and our teams. Our first priority today is to treat every person affected with the care and respect they deserve.Changes to Senior LeadershipI also want to share that Ali Dasdan has decided to move on from Dropbox. During his time here, Ali led and strengthened many of the technical capabilities we’ll rely on as we move into the next phase of our transformation. I’m grateful for his leadership, his partnership, and the foundation he and the team have put in place. Ali’s last day is November 18th, and he’ll be focused on ensuring a smooth transition through next month. We wish him all the best in what comes next.Why we’re making these changesOur business is profitable, and we’ve built real momentum this year. Our two-year strategy sets a clear direction for growth: solving more of our customers’ critical workflows; reaching more of our chosen customers, including larger companies; and bringing our technology to new markets.Delivering on that strategy requires concentrating our resources on the priorities that will have the greatest potential for customer impact and growth.That means making hard choices about where we invest, how we’re organized, and what work we simplify, scale back, or stop. Those choices include the difficult decision to reduce the size of our team.How we’ll prioritize going forwardIn order to be successful, we can’t take the same work and spread it across fewer people. We’ll streamline teams and concentrate support and resources against product areas that have the highest impact on our customers and Dropbox as a business.Taking care of impacted employeesTo those leaving Dropbox, we’re committed to supporting you through this transition. Departing Dropboxers are eligible for a severance package in line with the following:Severance, equity, and transition support:Sixteen weeks of pay beginning today, plus one additional week for each completed year at Dropbox. International packages will reflect local practices and legal requirementsQ4 equity vestingFor employees on the Corporate Bonus plan, a prorated lump-sum payment based on their 2026 bonus targetImmigration support for impacted visa holdersHealthcare and well-being:U.S. employees will receive six months of COBRA subsidy, if elected and eligibleModern Health access will continue through the end of the separation month to support mental well-being, with extension options detailed in severance packagesPayment for eligible current and approved upcoming paid leaves, including medical and family leaveAdditional support:Devices: Impacted employees will be eligible to keep (1) Dropbox laptop, (1) mobile device if assigned, and all existing desktop peripheralsJob placement: Job placement services and career coaching will be available at no costWhat comes nextRight now, our focus is on the colleagues who are leaving Dropbox. Please give them the space and support they need.And to everyone leaving Dropbox: thank you. Your work to build our capabilities, serve our customers, and contribute to our culture has been deeply meaningful. I’m grateful for everything you’ve contributed.Ashraf