HubSpot plans to reduce its workforce by about 7 per cent, affecting nearly 660 employees, as the company restructures its organisation around a shift towards AI-driven products and customer outcomes.
The company’s board approved the restructuring plan on October 1, with employees informed about the decision on October 6, according to a filing with the US Securities and Exchange Commission. The timing of the workforce reduction will vary across countries depending on local employment laws and consultation requirements.
HubSpot said the restructuring reflects a broader change in how it operates as it moves from developing software that helps customers grow towards delivering business outcomes through AI. The company plans to reorganise product teams around customer outcomes rather than individual product hubs and features.
The restructuring will also involve reducing management layers and giving teams greater decision-making authority. HubSpot plans to simplify its organisational structure, reduce fragmented ownership and create smaller, more agile teams with clearer accountability.
The company has stressed that the workforce reduction is not being driven by AI-related efficiency gains. Instead, it said the changes are intended to align its workforce and organisational structure with its evolving business strategy.
HubSpot also said the restructuring is not simply a cost-cutting exercise. The company plans to continue investing in AI while redirecting resources towards areas it considers its biggest opportunities.
Roles were assessed against criteria including strategic relevance, organisational layers, revenue generation, required capabilities, workforce capacity and leadership requirements.
For employees leaving the company, HubSpot has outlined a transition package that includes severance of 20 weeks of base pay plus one additional week for each year of service, capped at 30 weeks. Support also includes healthcare-related benefits, six months of career transition services and access to work equipment such as laptops and home-office devices, subject to applicable conditions.
The company expects the restructuring process and timing to differ across regions based on local requirements.
The workforce reduction comes as HubSpot seeks to change its organisational model while continuing to invest in AI and balance growth with profitability.
