HubSpot has announced that it will eliminate almost 660 positions, or 7% of its global workforce, as part of a broader organisational restructuring as it moves towards delivering customer outcomes with artificial intelligence.
HubSpot CEO Yamini Rangan announced the workforce reduction in a message to employees on October 6. The company’s board had approved the restructuring plan on October 1, according to a filing with the US Securities and Exchange Commission (SEC).
The restructuring is expected to create a flatter organisation with fewer management layers and move decision making closer to employees working directly on key priorities.
HubSpot said it expects to incur about $65 million to $75 million in charges associated with the restructuring. These will cover severance, notice periods, employee transition and benefits payments. Most of the charges are expected to be recognised in the fourth quarter of 2026.
Why is HubSpot cutting jobs?
HubSpot’s recent layoffs come as the company is in the midst of a massive transformation in artificial intelligence strategy.
Rangan said the company has moved over the past year from primarily developing software to help customers grow to delivering outcomes to customers with AI. This change is impacting HubSpot’s products, pricing model and approach to serving customers, the CEO said.
But HubSpot has specifically pointed out that the layoffs are not due to AI-related efficiencies.
Rangan said in her message to employees that the restructuring is about aligning the company’s organisation with its evolving strategy as opposed to simply replacing employees with AI or cutting costs. HubSpot also said it will continue investing in AI to increase productivity.
The company is going to reorganise its product teams around customer outcomes instead of the current Hub structure. They will work on generating demand, getting deals, customer satisfaction, and business growth.
The company also wants to get rid of management layers and create teams in which ownership and greater power to make decisions is easier.
HubSpot Layoffs to be completed by 2027
The job cuts will not necessarily take place in all markets at the same time. HubSpot said there will be regional laws and consultation requirements that may vary the process and when to do so.
The company expects the role eliminations to be substantially completed by the end of the first quarter of fiscal 2027. The SEC filing said substantially all related cash payments are expected to be made by June 30, 2027.
HubSpot has also offered support to employees affected by the layoffs. For each year of service employees will receive 20 weeks of base pay plus one additional week of pay for each year of service, up to 30 weeks, according to the company statement. Support can vary by region.
Affected employees will also get career transition services. HubSpot said outgoing employees may keep their laptops and some work-from-home equipment after the data is removed from the company remotely.
HubSpot is still investing in AI.
The layoffs are a manifestation of HubSpot’s bigger AI strategy being implemented.
The company has also been focusing heavily on AI-powered tools and agents designed to help businesses with sales, marketing and customer service. HubSpot said in its second-quarter 2026 report that it wants to accelerate its AI transformation and adapt its products, pricing and go-to-market strategy to meet the growing demand for AI-driven outcomes.
Despite the workforce reduction, HubSpot has kept its financial guidance for the third quarter of 2026 and full year. The restructuring charges will be excluded from its non-GAAP financial measures, it said.
The move shows how rapidly the technology industry is changing as companies redesign their operations around artificial intelligence. And although some businesses are directly linking workforce reductions to automation and AI adoption, HubSpot’s explanation is more about organisational restructuring and its changing business model.
The company expects the new structure to help it move faster, eliminate organisational complexity and put more resources into its biggest strategic priorities.
For employees, the restructuring means nearly 660 people will lose their jobs as HubSpot prepares for its next phase of growth. HogSpot is now all about AI-driven tools and agents to help businesses achieve business objectives in sales, marketing and customer service. HubSpot said in the second half of 2026 that it was accelerating its AI transformation and adapting its products, pricing strategy and go-to-market strategy to meet the demands of AI-driven outcomes.
Despite the reduction in the workforce, HubSpot has not changed its guidance for the third quarter and full year of 2026. And it also said the restructuring charges will be excluded from its non-GAAP financial performance.
This latest move shows how quickly the technology industry is changing as companies redesign their operations around artificial intelligence. While some companies are directly linking workforce reductions to automation and AI adoption, HubSpot’s explanation is more about organisational restructuring and its changing business model.
The company expects the new structure to be a tool that will make it move faster, simplify organisational layers in the company and allocate resources to its core business objectives.
For employees, however, the restructuring means nearly 660 people will lose their jobs as HubSpot prepares for its next phase of growth.
