10:07 AM EDT, 10/30/2024 (MT Newswires) -- Dropbox ( DBX ) said Wednesday it is reducing its global workforce by nearly 20% as the company continues to see macro headwinds in the core business.

The workforce reduction is expected to cost Dropbox ( DBX ) between $63 million and $68 million in severance, employee benefits and related expenses, the company said in a filing with the US Securities and Exchange Commission.

Dropbox ( DBX ) said it also estimates it will incur $47 million to $52 million in additional expenses related to these severance and benefits.

Most of the payments will be made in Q4, with the remaining expenses expected in H1 of 2025, the company said.

"We continue to see softening demand and macro headwinds in our core business," Chief Executive Drew Houston said in a letter to the company's employees. "But external factors are only part of the story. We've heard from many of you that our organizational structure has become overly complex, with excess layers of management slowing us down."

The company's shares were up 4.6% in recent trading.

Price: 27.01, Change: +1.19, Percent Change: +4.61