Dropbox to cut 9% of global workforce, CTO to step down

Dropbox will cut around 9% of its global workforce, eliminating roughly 200 roles across key teams. The layoffs are expected to cost USD 27 million to USD 33 million, while CTO Ali Dasdan will step down.Dropbox cuts 9% of workforce amid shift in product and growth priorities (AI-generated image)New Delhi,Oct 29, 2026 13:38 ISTCloud storage company Dropbox will cut about 9% of its global workforce, eliminating roughly 200 roles across its Engineering, Product, Design, and General and Administrative (G&A) teams. The company said the decision was aimed at aligning investments with its key product and growth priorities.As reported by Reuters, Dropbox disclosed the workforce reduction in a regulatory filing on Wednesday. The company expects the layoffs to cost between USD 27 million and USD 33 million, primarily in severance and related expenses.DROPBOX EXPECTS LAYOFFS TO COST UP TO USD 33 MILLIONDropbox expects to recognise most of the restructuring costs in the fourth quarter, with the remaining expenses to be recorded in 2027, according to Reuters.As of December 31, the company had 2,113 full-time employees. A reduction of around 9% would amount to approximately 190 employees based on that figure, while the company has separately indicated that roughly 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.CTO TO STEP DOWN The restructuring also comes alongside a leadership change. Dropbox Chief Technology Officer Ali Dasdan will step down from his position effective November 18, according to the regulatory filing cited by Reuters and the report by Business Insider.The leadership change follows a transition at the top of the company earlier this year. Dropbox co-founder and CEO Andrew Houston stepped down in May, with insider Ashraf Alkarmi promoted to succeed him.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.- Ends