Dropbox is laying off roughly 9% of its workforce. Read the memo.

Dropbox is dropping the layoffs hammer.

Dropbox co-CEO Ashraf Alkarmi announced on Wednesday that the cloud-based retention business is laying off approximately 9% of its earth workforce.

"Today, we're making difficult choices concerning anywhere we allocate and how we arrange Dropbox to accomplish the merchandise and growth priorities that volition matter most for our long-term strategy," Alkarmi wrote in an email to workers that the business posted publicly.

Alkarmi stated Dropbox is eliminating approximately 200 roles throughout its throughout Engineering, Product, Design, and G&A team. The company, Alkarmi wrote, is profitable but needs to create "hard choices" concerning anywhere it spends its money.

"Delivering on that scheme requires concentrating our resources on the priorities that volition have the top possible for client effect and growth," he wrote.

As part of the changes, Alkarmi additionally announced that chief innovation authoritative Ali Dasdan volition be spending down.

Read the complete email

Hi everyone,

Today, we're making difficult choices concerning anywhere we allocate and how we arrange Dropbox to accomplish the merchandise and growth priorities that volition matter most for our long-term strategy. As part of these changes, we've made the decision to eliminate concerning 200 roles throughout Engineering, Product, Design, and G&A teams (approximately 9% of our earth workforce). For most affected Dropboxers, today volition be their final day.

S-team and I obtain complete ownership of this decision and acknowledge that these colleagues have made meaningful contributions to Dropbox, our products, our customers, and our teams. Our archetypal precedence today is to treat all individual affected alongside the attention and regard they deserve.

Changes to Senior Leadership

I additionally desire to portion that Ali Dasdan has decided to move on from Dropbox. During his period here, Ali led and strengthened many of the specialized capabilities we'll depend on as we move into the next phase of our transformation. I'm grateful for his leadership, his partnership, and the basis he and the squad have put in place. Ali's final day is November 18th, and he'll be focused on ensuring a gentle passage through next month. We desire him all the finest in what comes next.

Why we're making these changes

Our endeavor is profitable, and we've built genuine momentum this year. Our two-year scheme sets a apparent direction for growth: solving additional of our customers' crucial workflows; reaching additional of our chosen customers, including larger companies; and bringing our innovation to new markets.

Delivering on that scheme requires concentrating our resources on the priorities that volition have the top possible for client effect and growth.

That method making difficult choices concerning anywhere we invest, how we're organized, and what activity we simplify, measure back, or stop. Those choices contain the difficult decision to decrease the size of our team.

How we'll prioritize going forward

In command to be successful, we can't obtain the identical activity and dispersed it throughout small people. We'll streamline teams and concentration assistance and resources against merchandise areas that have the highest effect on our customers and Dropbox as a business.

Taking attention of affected employees

To those leaving Dropbox, we're committed to supporting you through this transition. Departing Dropboxers are eligible for a severance bundle in row alongside the following:

Severance, equity, and passage support:

Sixteen weeks of pay commencement today, affirmative one additional week for all completed twelvemonth at Dropbox. International packages volition indicate local practices and lawful requirements

Q4 equity vesting

For workforce on the Corporate Bonus plan, a prorated lump-sum fee according to their 2026 reward target

Immigration assistance for affected visa holders

Healthcare and well-being:

U.S. workforce volition obtain six months of COBRA subsidy, if elected and eligible

Modern Health admission volition continue through the end of the separation duration to assistance mental well-being, alongside expansion options detailed in severance packages

Payment for eligible current and approved upcoming paid leaves, including medicinal and family leave

Additional support:

Devices: Impacted workforce volition be eligible to keep (1) Dropbox laptop, (1) mobile equipment if assigned, and all existing desktop peripherals

Job placement: Job placement services and occupation coaching volition be accessible at no cost

What comes next

Right now, our concentration is on the colleagues who are leaving Dropbox. Please provision them the area and assistance they need.

And to everyone leaving Dropbox: appreciate you. Your activity to build our capabilities, assist our customers, and contribute to our civilization has been deeply meaningful. I'm grateful for everything you've contributed.

Ashraf