HubSpot cuts nearly 660 jobs as AI reshapes its business
The marketing software company is eliminating 7% of its workforce and creating a flatter organization as it shifts its strategy toward delivering customer outcomes with AI.
HubSpot is cutting roughly 7% of its workforce, or nearly 660 employees, as it shifts its strategy toward delivering customer outcomes through artificial intelligence.
The layoffs were announced Tuesday by CEO Yamini Rangan, who told employees that HubSpot needs to fundamentally change how it is organized as its business moves toward an AI-driven model. The company said the cuts will help create a flatter organization with fewer management layers and allow it to concentrate resources on its highest priorities.
The restructuring was authorized by HubSpot's board on October 1, according to a filing with the U.S. Securities and Exchange Commission. The company expects to incur between $65 million and $75 million in charges, primarily related to severance, notice periods, employee transition and benefits payments. Most of those costs are expected to be recognized in the fourth quarter of 2026.
HubSpot said the job reductions are expected to be substantially completed by the end of the first quarter of 2027, subject to local legal and consultation requirements. Substantially all related cash payments are expected to be made by June 30, 2027.
Rangan framed the cuts as part of a broader change in how HubSpot operates rather than a straightforward cost-cutting exercise.
“Over the past year, we have shifted our strategy from building software that helps customers grow to delivering outcomes for them with AI,” Rangan wrote in her message to employees. She said that shift is changing HubSpot's products, pricing and approach to serving customers, requiring the company to reorganize around those priorities.
HubSpot plans to organize product teams around customer outcomes rather than its existing Hubs and features. It also plans to reduce management layers and give teams greater ownership over decisions and execution.
The company was explicit about what it says is not behind the layoffs. Rangan said the decision was “not driven by AI-related efficiencies,” arguing instead that HubSpot needs to align its organization with its new strategy.
“This is not simply a cost-cutting exercise,” she wrote. “This change is about where and how we invest so we can put more resources behind our biggest opportunities.”
The layoffs come less than a year after HubSpot made its first acquisition in Israel, buying XFunnel, a startup founded by Beeri Amiel and Neri Bluman that was only 10 months old at the time.
XFunnel developed tools designed to help marketers understand and improve how their companies appear in answers generated by artificial intelligence systems such as ChatGPT, Claude and Perplexity. HubSpot positioned the acquisition as part of its broader push into what it calls AI-powered marketing.
Employees leaving HubSpot will generally receive 20 weeks of base pay plus one additional week for each year of service, up to a maximum of 30 weeks. The company is also providing health benefits and six months of career-transition services, although the terms will vary by country.
