Customer relationship management (CRM) platform HubSpot has announced plans to reduce its global workforce by approximately 7%, affecting nearly 660 employees, as the company restructures its operations to align with its artificial intelligence strategy and focus on customer outcomes.
The restructuring was approved by HubSpot's board of directors on October 1, 2026, with employees informed of the decision on October 6. According to a filing with the US Securities and Exchange Commission (SEC), the company expects the workforce reduction to be substantially completed by the end of the first quarter of 2027, subject to local employment laws and consultation requirements.
In a communication to employees, HubSpot CEO Yamini Rangan explained that the company is transitioning from developing software that helps customers grow to delivering business outcomes through AI. The shift is influencing its product development, pricing and customer engagement strategies, prompting changes to its organisational structure.
Under the revised operating model, HubSpot will reorganise product teams around customer outcomes rather than individual product hubs and features. Teams will focus on areas such as demand generation, sales, customer engagement and business growth, with responsibility extending across the customer journey.
The company also plans to reduce management layers, simplify decision-making processes and establish more agile teams with clearer accountability. The changes are intended to bring decisions closer to employees directly involved in product development and customer delivery.
Rangan clarified that the layoffs were not a result of productivity gains achieved through artificial intelligence.
"This is not driven by AI-related efficiencies," she said, adding that HubSpot would continue investing in AI while realigning its organisational structure with its business priorities.
She also stated that the restructuring was not solely a cost-reduction measure, but part of an effort to redirect resources towards areas supporting long-term growth and profitability.
According to its regulatory filing, HubSpot expects to incur restructuring charges of approximately $65 million to $75 million, primarily covering severance payments, employee transition assistance and related benefits. Most of these charges are expected to be recognised during the fourth quarter of 2026.
Affected employees will receive severance support, including 20 weeks of base pay and an additional week for each year of service, capped at 30 weeks, subject to applicable conditions. The company is also providing healthcare-related assistance and six months of career transition support.
HubSpot expects substantially all restructuring-related cash payments to be completed by June 30, 2027.
The workforce reduction comes as HubSpot continues to integrate AI into its CRM and customer-facing software offerings, while changing how its teams develop and deliver products and services.
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