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HubSpot Announces Layoff Plan Affecting Approximately 7% of Workforce

In a regulatory filing, HubSpot announced that on October 1, the Board of Directors of the company authorized the Plan that results in the elimination of certain roles, impacting approximately 7% of the company's workforce. "As the company has evolved its strategy to have a deeper focus on delivering customer outcomes, it must also change how it organizes and operates. The Plan is designed to create a flatter, faster organization aligned to that strategy, with the resources to invest in the biggest opportunities that support the company's long-term growth and profitability objectives," it said. The company estimates that it will incur charges of approximately $65M-$75M in connection with the Plan, consisting primarily of future cash expenditures related to severance, notice period, employee transition and benefits payments. The company expects to recognize the majority of these charges in the fourth quarter of fiscal year 2026. The company expects the role eliminations to be substantially complete by the end of the first quarter of fiscal year 2027, subject to local law and consultation requirements, and substantially all related cash payments to be made by June 30, 2027.