Dropbox plans to eliminate about 200 jobs across its global workforce as the cloud storage company reshapes its teams around key product and growth priorities. Chief Technology Officer Ali Dasdan will also leave the company, effective Nov. 18, 2026, according to the company’s announcement on Wednesday.
The restructuring will affect employees across Engineering, Product, Design and general and administrative teams. Dropbox said most affected employees would have their last day on Oct. 28.
Restructuring to cost up to $33 million
Dropbox estimates the workforce reduction will require $27 million to $33 million in cash expenditures, mainly for severance payments, employee benefits and related costs. The company expects to record $20 million to $25 million in incremental expenses, with most of the costs recognized in the fourth quarter of 2026 and the remainder in 2027.
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In a message to employees published on the company’s blog, co-CEO Ashraf Alkarmi said Dropbox needed to concentrate resources on business areas with the greatest potential to improve customer outcomes and drive growth. The company plans to streamline teams and prioritize product areas it considers most important to its long-term strategy.
Dropbox said affected employees would be eligible for severance, equity vesting and transition support. The package includes 16 weeks of pay, plus one additional week for each completed year of service. International arrangements will reflect local practices and legal requirements. Eligible employees will also receive career coaching and job-placement assistance, while affected visa holders will receive immigration support.
Leadership changes at Dropbox
Dasdan’s departure follows an earlier leadership transition at the company. Co-founder and former CEO Andrew Houston stepped down in May, with Ashraf Alkarmi subsequently promoted to succeed him, Reuters reported.
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In its regulatory filing, Dropbox disclosed that Dasdan would receive a pro-rated bonus of $515,000 and a lump-sum cash payment of approximately $1.3 million under his separation agreement, in addition to other benefits.
Despite the restructuring, Dropbox said it expected its third-quarter 2026 financial results to be in line with or above its previously announced guidance for revenue, constant-currency revenue and non-GAAP operating margin. The company scheduled the release of its quarterly results for Nov. 5. The workforce reduction reflects Dropbox’s effort to redirect resources toward its chosen product and growth priorities while reorganizing its teams and leadership.