HubSpot is cutting close to 660 jobs, or about 7% of its global workforce, as the software company restructures around artificial intelligence and a flatter operating model.
The layoffs were announced on Oct. 6 after HubSpot’s board approved the restructuring plan on Oct. 1. The company expects most of the workforce reductions to be completed by the end of the first quarter of 2027.
HubSpot Cuts Jobs as AI Strategy Changes
CEO Yamini Rangan said HubSpot has spent the past year shifting its strategy from simply providing software that helps customers grow toward delivering customer outcomes using AI.
That transition is changing the way HubSpot structures its products, pricing and internal teams. The company plans to reduce management layers, give teams more end-to-end ownership and organize more closely around customer outcomes rather than individual software hubs.
Rangan stressed that the layoffs were not being driven by AI replacing workers or by a traditional cost-cutting exercise. However, the restructuring is closely tied to HubSpot’s plan to reposition itself for an AI-focused software market.
HubSpot expects to record approximately $65 million to $75 million in restructuring charges, primarily related to severance, benefits and transition costs. The company also reaffirmed its revenue and non-GAAP operating income guidance for the third quarter and full year.
HubSpot Stock Falls After Layoff Announcement
Investors gave the announcement a cautious response. HubSpot shares closed at $217.09 on Oct. 6, down 1.6% from the previous session’s $220.61 close. The stock traded as low as $215.13 during the day before recovering some of those losses.
The decline was relatively modest considering the size of the layoffs, which suggests that investors may see the restructuring as a strategic adjustment rather than evidence of a sudden deterioration in HubSpot’s business.
However, the bigger concern remains HubSpot’s longer-term share performance. The stock was already down sharply in 2026 before the announcement, and investors are still assessing how AI could reshape the economics of traditional software companies.
Overall, the company is not simply cutting costs during a downturn, but trying to reorganize itself while the competitive industry for software is being rewritten by AI.
