Dropbox Inc. announced plans to reduce its global workforce by approximately 20% on Wednesday, aiming to realign its team structure with long-term growth goals and improve profitability.

The company expects the layoffs to result in cash expenditures between $63 million and $68 million, primarily for severance payments and employee benefits.

Dropbox will recognize $47 million to $52 million in expenses related to these costs, with most incurred in the fourth quarter of 2024.