HubSpot to cut 7% of workforce in restructuring plan

HubSpot, Inc. (NYSE: HUBS) announced a restructuring plan on Oct. 1, 2026, after its Board of Directors authorized the elimination of certain roles affecting approximately 7% of its workforce.

The company estimates it will incur charges of $65 million to $75 million related to the plan, consisting primarily of severance, notice period, employee transition, and benefits payments. HubSpot expects to recognize the majority of these charges in the fourth quarter of fiscal year 2026, with role eliminations substantially complete by the end of the first quarter of fiscal year 2027. Related cash payments are expected to be substantially complete by June 30, 2027.

HubSpot stated the restructuring is intended to create a "flatter, faster organization" aligned with a strategy focused on delivering customer outcomes. Charges associated with the plan will be excluded from the company's non-GAAP financial measures.

The company reaffirmed its revenue, non-GAAP operating income, and non-GAAP net income per share guidance for the third quarter of fiscal year 2026, ending September 30, 2026, and for the full fiscal year ending December 31, 2026. HubSpot said it remains confident in achieving longer-term operating margin targets outlined at its Analyst Day on September 17, 2026.

The company noted that actual expenses may differ materially from current estimates, and additional charges could arise from unanticipated events during the plan's implementation.

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