HubSpot will cut nearly 660 jobs, which accounts for about 7% of its total global workforce. The software company is reorganizing around artificial intelligence and a more flat operational model.

The layoff was announced on October 6th. HubSpot stated that its board of directors approved this reorganization plan on October 1st. The company expects that most of the layoffs will be completed by the end of the first quarter of 2027.

HubSpot conducts layoffs due to strategic adjustments by AI

CEO Yamini Rangan stated that HubSpot has been adjusting its strategy over the past year, shifting from simply providing software to help customers grow to delivering tangible results to customers with the help of AI.

She said that this transformation is changing the way HubSpot organizes its products, pricing, and internal teams. The company plans to reduce management levels, give teams more end-to-end ownership, and reorganize the structure more closely around customer outcomes rather than individual software modules.

Rangan emphasizes that this round of layoffs is not due to AI replacing employees, nor is it a traditional cost-cutting measure. However, this reorganization is closely related to HubSpot's plan to reposition itself in the software market driven by AI.

After the layoff news, the stock price of HubSpot fell.

Despite the significant scale of layoffs, the decline in stock price was relatively limited, which indicates that investors may regard this reorganization as a strategic adjustment, rather than a sign of a sudden deterioration in HubSpot's business.

Overall, the company is not simply cutting costs during economic downturns; rather, it is reorganizing itself at a time when AI is reshaping the competitive landscape of the software industry.