HubSpot announced Tuesday that it is eliminating approximately 660 positions, representing about 7% of its global workforce, as part of a restructuring plan tied to its shift toward AI-driven customer outcomes.
The company’s board authorized the plan on October 1, 2026, the SEC filing shows. HubSpot expects to incur charges of $65 million to $75 million, consisting primarily of severance, notice period, and employee transition and benefits payments. HubSpot said most of the charges are expected to hit in the fourth quarter of fiscal 2026, and that workforce reductions should wrap up no later than the close of the first quarter of 2027.
Chief Executive Officer Yamini Rangan framed the restructuring as a shift in how the company operates rather than a response to cost pressures. “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 the goal is to build a flatter organization with fewer management layers, moving decisions closer to employees doing the work.
Rangan also said the cuts were not driven by AI-related efficiencies or cost-cutting, according to the Boston Globe. According to the Globe, the severance package includes a minimum of 20 weeks of base pay, laptop retention, and support for employees navigating their next job search.
HubSpot reaffirmed its revenue and non-GAAP operating income guidance for both the third quarter of fiscal year 2026 and the full year ending December 31, 2026. The restructuring charges will be excluded from its non-GAAP results. The company said it remains on track to meet longer-term operating margin targets outlined at its Analyst Day on September 17, 2026.
HubSpot stock ended Monday’s session at $220.61, a decline of roughly 45% since the start of the year. Shares fell modestly during Tuesday afternoon trading.
The layoffs arrive amid a broader wave of AI-related workforce reductions across the technology sector. AI-cited job cuts reached 38,579 in May alone — the highest monthly total since outplacement firm Challenger, Gray & Christmas began tracking the category in 2023. Separately, some companies have reversed AI-driven layoffs after discovering the technology could not fully replace eliminated roles.