HubSpot to lay off 660 employees as Cambridge company reorganizes around AI

The 30-second version

HubSpot, the Cambridge-based marketing and sales software company, announced Tuesday it is laying off nearly 660 employees, about 7% of its workforce, as it reorganizes around a strategy built on artificial intelligence. CEO Yamini Rangan announced the cuts in a letter to employees, and the company detailed the plan in a filing with the Securities and Exchange Commission.

What the company said

Rangan wrote that HubSpot has shifted "from building software that helps customers grow to delivering outcomes for them with AI," and that the change "is transforming product, pricing and how we serve our customers."

The company plans three changes, according to the letter, which was filed publicly with the SEC:

• Organize product teams around customer outcomes rather than individual product "Hubs," with each team owning the full customer journey.
• Reduce management layers and move decisions closer to the people doing the work.
• Put more resources behind what the company calls its biggest opportunities.

Rangan emphasized that the layoffs are not the result of AI making employees more productive or replacing their work. "This is not driven by AI-related efficiencies," she wrote. She also said the move "is not simply a cost-cutting exercise."

What workers get

Affected employees will receive 20 weeks of base pay plus an additional week for each year of service, up to 30 weeks, along with five months of healthcare benefits and career support, according to the company.

The local picture

HubSpot's board authorized the plan on October 1, according to the SEC filing, and most of the cuts are expected to be completed by the first quarter of 2027. The company estimates the layoffs will cost between $65 million and $75 million.

The company has not said how many Massachusetts employees are affected. HubSpot reported 8,882 full-time employees at the end of 2025, with 5,724 in the Americas, according to its most recent annual report. The cuts come during a rough stretch for the company's stock, which is down roughly 46% this year, the Boston Globe reported.

In August, HubSpot reported second-quarter revenue of nearly $912 million, up 20% from a year earlier, with Rangan telling investors the company had "made deliberate choices to accelerate our AI transformation."

Sources

• HubSpot 8-K filing and CEO letter to employees (SEC)
• Boston.com: HubSpot to lay off 660 employees
• Boston Globe: HubSpot to lay off more than 600 employees
• CBS Boston: HubSpot layoffs to affect 660 employees

Cover image is an AI-generated illustration, not a photo of HubSpot's offices. New England Press reported this brief from public filings and the outlets linked above.