Dropbox to cut 9% of workforce as CTO Ali Dasdan exits

# Dropbox to Cut 200 Jobs as Company Refocuses on Product and Growth Priorities

Dropbox plans to eliminate approximately 200 positions across its global workforce as the cloud storage company reorganizes its operations and redirects resources toward key product and business growth priorities. The restructuring will affect several departments, while Chief Technology Officer Ali Dasdan is also set to leave the company effective November 18, 2026.

According to the company's announcement on Wednesday, the job cuts will affect employees in Engineering, Product, Design, and general and administrative teams. Most affected employees are expected to have their final working day on October 28.

## Restructuring Costs Could Reach $33 Million

Dropbox estimates that the workforce reduction will result in cash expenditures of between $27 million and $33 million. The expenses will primarily cover severance payments, employee benefits and related costs.

The company expects to recognize $20 million to $25 million in incremental expenses, with most recorded during the fourth quarter of 2026 and the remaining costs expected in 2027.

In a message published on the company's blog, co-CEO Ashraf Alkarmi said Dropbox needed to concentrate its resources on business areas with the greatest potential to improve customer outcomes and support growth. The company plans to streamline its organizational structure and prioritize products it considers central to its long-term strategy.

Employees affected by the layoffs will be eligible for severance payments, equity vesting and transition assistance. The severance package includes 16 weeks of pay, with an additional week for every completed year of service. Arrangements for international employees will depend on local practices and legal requirements.

Eligible workers will also receive career coaching and job-placement assistance. Employees holding work visas will be offered immigration support as they navigate the transition.

## CTO Departure Marks Another Leadership Change

The restructuring also includes the departure of Chief Technology Officer Ali Dasdan, who will leave Dropbox on November 18, 2026. The company disclosed details of his separation agreement in a regulatory filing.

Under the agreement, Dasdan will receive a prorated bonus of $515,000 and a lump-sum cash payment of approximately $1.3 million, along with other benefits.

His departure follows an earlier leadership transition in May, when co-founder and former CEO Andrew Houston stepped down. Ashraf Alkarmi was subsequently promoted to succeed him, according to Reuters.

These changes come as Dropbox adjusts its organizational structure and leadership while concentrating on areas it believes can deliver stronger customer outcomes and support its future business strategy.

## Dropbox Maintains Its Financial Outlook

Despite the planned workforce reduction, 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 November 5.

The restructuring reflects Dropbox's effort to simplify its operations, reduce organizational costs and redirect resources toward selected products and growth opportunities. The job cuts, associated transition expenses and CTO departure represent significant changes as the company adjusts its workforce and leadership to match its strategic priorities.