HubSpot said it will cut about 7% of its workforce, eliminating nearly 660 jobs, as the company reorganizes around AI-driven customer outcomes.
The reduction marks a sharp reset in the company’s structure. HubSpot said it will move from organizing around hubs and features to organizing product teams around customer outcomes, with each team owning the full customer journey. It also plans to reduce management layers and flatten decision-making, while creating smaller teams with clearer ownership.
The company said the move is not being driven by AI-related efficiencies and is not simply a cost-cutting exercise. Instead, it said the restructuring is meant to align the organization with a strategy centered on delivering outcomes with AI.
HubSpot outlined severance for impacted employees of 20 weeks of base pay plus one week for each year of service, capped at 30 weeks. It also said U.S. employees will receive five months of COBRA coverage as a lump sum, while employees globally will receive five months of Modern Health support. All departing employees will get six months of career transition services.
The company said impacted workers may keep their laptops and other work-from-home equipment, and U.S. departing employees will have access to 1:1 conversations with managers. As a result of these announcements, the company's shares have moved 2.83% on the market, and are now trading at a price of $220.61. Check out the company's full 8-K submission here.
