HubSpot's revenue rose 20% last quarter. Now it is cutting nearly 660 jobs.
Chief executive Yamini Rangan told employees on Tuesday that HubSpot would cut nearly 660 people, about 7% of its staff.
The memo was filed with the US securities regulator.
Second-quarter revenue reached $911.7 million, up 20% on a year earlier, CMSWire reported. The cuts will cost $65 million to $75 million, mostly severance and mostly in the fourth quarter.
Rangan said the cuts were "not driven by AI-related efficiencies," meaning savings from artificial intelligence. The same memo describes a shift from selling software that helps customers grow to delivering outcomes with AI. Product teams will be organised around customer outcomes, with fewer management layers.
So the strategy is built on AI, while the memo says AI savings did not drive the cut.
The missing detail for customers is where the cuts land. HubSpot declined to identify the functions or regions most affected. Until it does, customers cannot tell which of the teams they deal with will shrink.
When a vendor reorganises around outcomes, which commitment in your contract do you check first?
Sources
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