U.S. cloud storage company Dropbox will cut 200 jobs, about 9 percent of its global workforce. The decision is aimed at reshaping the organisation and concentrating investment on core businesses in line with its long-term growth strategy, even as it remains profitable.

Business Insider reported on Oct. 28, local time, that Dropbox decided to eliminate about 200 roles across engineering, product development, design and general administration. Most employees affected left the company on the day of the announcement.

Dropbox co-chief executive Ashraf Alkarmi (아슈라프 알카르미) said in an internal memo that the company is adjusting its investment direction and organisational structure in line with products and growth goals needed for its long-term strategy. He added that while the company is generating profit and has delivered results in this year's business, it needs to focus resources on areas with greater customer impact and growth potential.

Dropbox plans over the next 2 years to strengthen products that solve customers' core work problems, and to focus on winning large corporate clients and entering new markets. To do so, it will scale back or halt some work and simplify the organisation. It also stressed it would avoid assigning the same existing workload to remaining employees after the layoffs.

Management changes will also take place. Dropbox Chief Technology Officer Ali Dasdan (알리 다스단) will leave the company on Nov. 18. Dasdan is expected to support the handover of work within the technology organisation before stepping down.

Those affected will receive severance equal to a base of 16 weeks of pay, plus an additional week of pay for each year of service. The package also includes fourth-quarter stock compensation and prorated annual performance bonuses for eligible employees.

For U.S. employees, the company will cover the cost of extended health insurance for 6 months depending on eligibility. It will also provide immigration-related support for visa holders, as well as free outplacement counselling and career coaching.

Dropbox expects the restructuring to cost about $27 million to $33 million, including severance and benefits. Most of the related costs are expected to be reflected in the fourth quarter this year.

Dropbox also said it expects third-quarter revenue and adjusted operating margin to meet or exceed its previous forecast. The report said the move is viewed as an organisational reshuffle to reallocate resources to growth areas rather than an urgent layoff driven by weak results.