The cloud storage company is spending between $27 million and $33 million to reduce its global workforce by about 9%, with most of those costs hitting in the fourth quarter. Approximately 200 positions across the engineering, product, design and general and administrative divisions are being eliminated to concentrate resources on the firm’s highest-impact growth priorities. For most of those affected, the layoffs take effect immediately, with severance packages offering 16 weeks of pay plus one additional week for every year of service.
The reduction marks the third round of layoffs for Dropbox since 2023, which has cut roughly 1,200 roles in total over the last three and a half years. Chief Technology Officer Ali Dasdan steps down on Nov 18 and will receive a $515,000 pro rata bonus and about $1.3 million in cash. Despite the restructuring, the company will report its third quarter results on Nov 5 and maintains that revenue and non-GAAP operating margin will likely meet or exceed previous guidance.
