HubSpot cuts nearly 660 jobs in AI-driven restructuring

HubSpot will eliminate nearly 660 roles, about 7% of its global workforce, in a restructuring centred on artificial intelligence, the company announced on Tuesday. CEO Yamini Rangan told staff in a memo that HubSpot must “fundamentally change how we are organized” as the business shifts from building software that helps customers grow to delivering outcomes for them with AI (https://www.calcalistech.com/ctechnews/article/r1bnk6gsge).

The board authorized the plan on 1 October, according to an SEC 8-K filing. HubSpot expects $65 million to $75 million in charges, mostly severance, notice periods, transition and benefits payments, with most recognised in Q4 fiscal 2026. The cuts should be substantially complete by the end of Q1 fiscal 2027 (https://www.cmswire.com/digital-experience/hubspot-cuts-660-jobs-reorganizes-product-teams-around-customer-outcomes/).

Product teams will be reorganised around customer outcomes rather than its existing Hubs, with fewer management layers and decision-making pushed closer to the work. Rangan was explicit about the motivation: the cuts are “not driven by AI-related efficiencies”, she wrote, calling it “not simply a cost-cutting exercise” (https://www.timesnownews.com/business-economy/companies/hubspot-layoffs-tech-firm-to-cut-660-jobs-amid-ai-restructuring-article-156290857).

HubSpot maintained its Q3 and full-year 2026 revenue and non-GAAP operating income guidance, with the restructuring costs excluded from non-GAAP measures. The cuts come with shares down about 45% year-to-date after closing near $221 on Monday (https://www.MarketBeat.com/stocks/NYSE/HUBS/chart/; https://finnhub.io/?q=%22HUBS%22).

Departing staff generally get 20 weeks of base pay plus one week per year of service up to 30 weeks, five months of COBRA coverage in the US, six months of outplacement support, and can keep their laptops.