HubSpot has announced the layoff of approximately 660 employees, representing 7% of its global workforce as part of a comprehensive restructuring initiative. According to reports from Livemint, the Boston Globe, and StreetInsider, the company's board authorized the reduction on October 1, 2026, with the announcement made on Tuesday. The job cuts are expected to be completed by the end of the first quarter of 2027 at the latest, as the software company reorganizes its operations around its AI-driven customer outcomes strategy. HubSpot had 8,882 full-time workers at the end of 2025, with 5,724 in the Americas, according to the company's latest SEC filing, though the company declined to clarify how many of the affected employees are based in Massachusetts. This marks the company's second 7% workforce reduction in three years, following approximately 500 position eliminations in January 2023 after post-pandemic demand decelerated faster than management had budgeted for.
HubSpot estimates that the restructuring will cost between $65 million and $75 million, with most charges expected to be recorded during the fourth quarter of fiscal 2026. As reported by Livemint, the Boston Globe, and StreetInsider, the expenses will largely cover severance, notice-period payments, employee transition costs and benefits. Despite the significant restructuring costs, HubSpot has maintained its revenue and non-GAAP operating income forecasts for both the third quarter of fiscal 2026 and the full year ending December 31, 2026. The company recently reported $911.7 million in total revenue for the second quarter of 2026, up about 20% from the same period a year earlier. HubSpot also forecast total revenue for 2026 to be around $3.7 billion, up about 18% from 2025. The company stated that restructuring-related expenses will not be included in its non-GAAP results and remains on track to meet longer-term operating margin targets outlined at its Analyst Day on September 17, 2026.
HubSpot CEO Yamini Rangan described the move as an organizational overhaul linked to the company's changing business model, rather than a response to pressure to reduce expenses. According to Livemint, the Boston Globe, and StreetInsider, Rangan wrote in a memo to employees that "That shift is transforming product, pricing and how we serve our customers. But we also need to fundamentally change the way we are organized to compete and win." The CEO emphasized that the layoffs were not the result of AI-driven efficiencies or a cost-cutting exercise, stating that the job cuts were part of the company's efforts to build "a flatter organization," cutting down on "management layers and [moving] decisions closer to the people doing the work." Rangan wrote that "We need to move faster, stay closer to our customers and focus our resources on our highest priorities to set ourselves up for success in this next chapter. That requires difficult choices about how we are organized."
Affected employees will receive a severance package including at least 20 weeks of base pay, along with the option to keep their laptops, as reported by Livemint, the Boston Globe, and StreetInsider. The package will also provide support to employees as they look for new jobs. This comprehensive support structure reflects the company's approach to managing the transition for its workforce during this significant organizational change. The severance and transition payments are expected to continue through June 30, 2027, providing extended support for affected employees during their job search process.
HubSpot shares closed at $220.61 on Monday, down about 45% year-to-date, as reported by the Boston Globe. The layoffs come as technology companies continue to reduce workforces while adapting to the growing use of artificial intelligence. AI-related job cuts totalled 38,579 in May alone, marking the highest monthly figure since outplacement firm Challenger, Gray & Christmas started tracking AI-linked reductions in 2023. However, some companies have subsequently reversed AI-related layoffs after finding that the technology was unable to completely take over the responsibilities previously handled by eliminated workers. The company's stock decline has been particularly pronounced in 2026, with the 45% year-to-date slide defining much of the company's performance. Notably, the filing confirmed that third-quarter and full-year 2026 revenue guidance remained unchanged despite the restructuring charges.
