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(Sharecast News) - Cloud storage company Dropbox announced plans on Wednesday to cut approximately 9% of its global workforce as part of efforts to streamline operations and focus investment on its key products and growth priorities.
In a regulatory filing ahead of its third-quarter results next week, the company said the restructuring would result in estimated cash costs of $27m-33m, primarily comprising severance payments, employee benefits and related expenses.
Dropbox expects to recognise $20m-25m in additional expenses associated with the job cuts, with substantially all of those charges and the majority of cash payments anticipated in the fourth quarter of 2026. The remaining costs are expected to be recognised and paid in 2027.
The company said the workforce reduction was intended to align its investment and staffing structure more closely with its long-term strategy.
Separately, Dropbox announced that chief technology officer Ali Dasdan would step down on 18 November.
The announcements came as Dropbox provided a preliminary update on its third-quarter trading performance, saying revenue and operating margins for the three months to September would be in line with or above its previously issued guidance.
Shares were down 1.3% at $36.47 by 1603 GMT.
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