HubSpot Lays Off 7% of Workforce, Says It’s Not Because of AI

Software provider HubSpot is laying off 660 employees, or 7% of its staff, as part of a restructuring that will include eliminating some management layers and reorganizing product teams, CEO Yamini Rangan announced in a blog post.

The job cuts are “not simply a cost-cutting exercise” and do not stem from HubSpot’s internal usage of AI to replace work that has traditionally been handled by human staff, Rangan said in the blog post.

HubSpot’s layoffs come at a time when some investors are concerned that traditional business software providers are under threat from AI. Many of HubSpot’s peers, including Salesforce, ServiceNow, and Atlassian, have also laid off staff this year.

HubSpot, which sells customer management software to small- and medium-size companies, has seen its shares fall more than 40% since the start of the year. These types of customers may be more likely to vibe code their own CRM applications and features than larger companies with more stringent management and regulatory compliance requirements.