HubSpot is cutting around 660 jobs, or roughly 7% of its global workforce, as the software company reorganises its operations around its push to deliver customer outcomes.
The company announced the on Tuesday. HubSpot’s board approved the restructuring plan on October 1, 2026.
HubSpot expects up to $75 million in restructuring costs
HubSpot estimates that the restructuring will cost between $65 million and $75 million. The expenses will largely cover severance, notice-period payments, employee transition costs and benefits.
Most of the charges are expected to be recorded during the fourth quarter of fiscal 2026. HubSpot said the job cuts are expected to be completed by the end of the first quarter of 2027 at the latest.
CEO says restructuring is about changing how HubSpot operates
HubSpot CEO Yamini Rangan described the move as an organisational overhaul linked to the company’s changing business model, rather than a response to pressure to reduce expenses.
“That shift is transforming product, pricing and how we serve our customers,” Rangan wrote in a memo to employees. “But we also need to fundamentally change the way we are organized to compete and win.”
Rangan said HubSpot plans to create a flatter organisational structure with fewer layers of management. The company also intends to push decision-making closer to employees directly involved in the work.
According to the Boston Globe, Rangan said the layoffs were not the result of AI-driven efficiencies or a cost-cutting exercise.
Employees to receive severance and job-search support
The severance package includes at least 20 weeks of base pay, along with the option for affected employees to keep their laptops, the Boston Globe reported.
The package will also provide support to employees as they look for new jobs.
HubSpot maintains 2026 financial guidance
Despite the restructuring, 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 said restructuring-related expenses will not be included in its non-GAAP results. HubSpot also reiterated that it remains on course to achieve the longer-term operating margin targets it outlined during its Analyst Day on September 17, 2026.
HubSpot shares down about 45% this year
HubSpot shares closed at $220.61 on Monday, leaving the stock down about 45% since the beginning of 2026. The shares recorded a modest decline during Tuesday afternoon trading.
AI-linked layoffs continue across tech sector
HubSpot’s announcement comes as technology companies continue to reduce their 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 the workers whose jobs had been eliminated.