Dropbox announces reduction of global workforce by about 9%

File hosting service Dropbox said on Wednesday it would cut its global workforce by about 9% to align investments with its top product and growth priorities, according to a regulatory filing.

Here are some more details:

• The cloud storage company estimates the layoffs will cost $27 million to $33 million, primarily in severance and related costs


• Dropbox expects to recognize most of the costs in the fourth quarter, with the remainder in 2027

• As of December 31, the company had 2,113 full-time employees

• Chief Technology Officer Ali Dasdan will also step down, effective November 18, the filing said

• CEO and co-founder Andrew Houston stepped down in May, with insider Ashraf Alkarmi promoted to succeed him

• Separately, Dropbox said it expects third-quarter results to be in line with or above its prior guidance for revenue and adjusted operating margin