Dropbox Plans 9% Workforce Cut; CTO to Step Down

Dropbox plans to cut about 9% of its global workforce, or roughly 200 jobs, to redirect investment toward product and growth priorities. The company estimates $27 million to $33 million in cash costs and $20 million to $25 million in incremental expenses, with most costs expected in the fourth quarter of 2026 and the remainder in 2027. Chief Technology Officer Ali Dasdan will step down on November 18, 2026; his disclosed departure package includes a prorated $515,000 bonus and about $1.3 million in cash. Dropbox expects third-quarter revenue and adjusted operating margin to meet or exceed its previous guidance. The cuts follow Andrew Houston’s move from CEO to executive chairman and Ashraf Alkarmi’s appointment as CEO.