HubSpot is cutting nearly 660 jobs, about 7 percent of its workforce, as the Cambridge software giant restructures around artificial intelligence amid a stock slump. The company's board authorized the reduction on October 1, with severance and transition payments expected to continue through June 30, 2027.
As reported by The Boston Globe, HubSpot CEO Yamini Rangan said the company's AI pivot played a part in the restructuring, writing that the shift is transforming product, pricing and how HubSpot serves customers. Rangan also said the layoffs are part of an effort to build a flatter organization, with the company planning to cut management layers and move decisions closer to employees. A HubSpot spokesperson did not clarify how many of the affected employees are based in Massachusetts, according to the same report.
Severance Terms and a Shrinking Stock Price
Affected employees will receive at least 20 weeks of base pay as severance, along with the ability to keep their HubSpot laptops and help navigating the job search, per the Globe's reporting. HubSpot's stock closed at $220.61 on Monday, down about 45 percent year to date — a slide that has defined much of the company's 2026.
The filing, detailed by StreetInsider, shows the board authorized the cuts on October 1, with most of an expected $65 million to $75 million in restructuring charges landing in the fourth quarter of 2026. Notably, the filing confirmed that third-quarter and full-year 2026 revenue guidance remained unchanged despite those charges. HubSpot has forecast 2026 total revenue of around $3.7 billion, an increase of about 18 percent from 2025, and the company reported $911.7 million in second-quarter revenue, up roughly 20 percent year-over-year.
Jefferies Comments on Slowdown
Jefferies commented on the slowdown.
A Second 7 Percent Cut in Three Years
This is not HubSpot's first brush with a reduction of this scale. CX Today reported that the company eliminated approximately 500 positions, also 7 percent of its workforce, in January 2023 after post-pandemic demand decelerated faster than management had budgeted for. At the time, Rangan noted that headcount had outpaced revenue growth across multiple divisions.
From Scrapped Megadeal to AI Rebrand
HubSpot's standalone path was shaped in part by a deal that never happened: in July 2024, Google parent company Alphabet ended discussions to acquire HubSpot, abandoning what would have been its largest acquisition ever before talks reached formal due diligence, according to SiliconANGLE. News of the deal's collapse sent HubSpot stock down more than 11 percent in a single day.
This spring, Hoodline reported that HubSpot rebranded its flagship conference from INBOUND to UNBOUND, a shift away from traditional search-driven marketing toward AI software tools that followed a steep earlier stock decline.
Local Roots, Global Reach
HubSpot launched in 2006.
HubSpot expects to substantially complete the job cuts by the end of the first quarter of fiscal year 2027.
