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Dropbox rises 5% on plans to cut 16% workforce

Published 04/27/2023, 09:19 AM
Updated 04/27/2023, 09:26 AM
© Reuters.  Dropbox (DBX) rises 5% on plans to cut 16% workforce

Shares of Dropbox (NASDAQ:DBX) are trading about 5% higher today after the company said it plans to slash its global workforce by approximately 16%.

The decision has been made in order to “streamline the company’s team structure to support its long-term growth and profitability objectives.”

Savings will be reinvested “into future growth initiatives” while the company plans to continue to hiring for roles critical to those initiatives. The restructuring plan will result in $37 million to $41M charges with the majority of these charges incurred in Q2.

Moreover, Dropbox said it expects its Q1 results “to be in-line or above its guidance ranges.” The company is due to report its final Q1 results on May 04.

Shares are down 6.7% year-to-date.

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