Dropbox to Cut About 9% of Workforce as CTO Ali Dasdan Departs

Dropbox is cutting about 9% of its global workforce, the company said in a regulatory filing Wednesday, as it reshapes its teams around its top product and growth priorities. The same filing disclosed that its chief technology officer is leaving and that it expects third-quarter results to land in line with or above its own guidance.

The reduction is meant "to align the Company's investments and team structure with its top product and growth priorities and support its long-term strategy," according to its 8-K.

What the cuts will cost

Dropbox estimates the layoffs will require total cash spending of about $27 million to $33 million, mostly severance payments, employee benefits and related costs. Severance will include a pro rata share of the fiscal 2026 annual employee bonus.

Because the company has already accrued part of those bonus amounts through Sept. 30, it expects to recognize $20 million to $25 million of incremental expense tied to the severance, benefits and related costs, the filing says.

Dropbox expects to book substantially all of that incremental expense, and pay most of the cash, in the fourth quarter of 2026, with the remainder recognized and paid in 2027. The company cautioned that the estimates rest on assumptions, including local law requirements in various jurisdictions, and that actual amounts may differ materially.

CTO Ali Dasdan to step down

Chief Technology Officer Ali Dasdan will leave Dropbox effective Nov. 18, 2026, the company said.

He will receive severance benefits under his previously disclosed change in control and severance agreement. Under a separate separation agreement, Dasdan will also get a pro rata bonus of $515,000 and a lump-sum cash payment of about $1.3 million, plus certain additional benefits consistent with those given to other departing employees, according to the 8-K. The company said the full separation agreement will be filed with a later periodic report.

A preview of the quarter

Alongside the restructuring news, Dropbox said it expects third-quarter 2026 results to be in line with or above the guidance ranges it gave on Aug. 6 for revenue, constant currency revenue and non-GAAP operating margin.

The company described those figures as preliminary and unaudited, subject to normal quarterly closing processes and accounting review. It did not disclose specific numbers.

What comes next

Dropbox is scheduled to report full third-quarter 2026 results on Thursday, Nov. 5, 2026.

Sources

1. Dropbox Form 8-K on workforce reduction, CTO departure and preliminary third-quarter 2026 results, filed Oct. 28, 2026 (accession 0001467623-26-000052)

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