HubSpot outlines restructuring and AI strategy shift

HubSpot says its strategy has shifted from building software to help customers grow to using AI to deliver customer outcomes.[1] It says the shift is changing its products, pricing and how it serves customers.[1] The company says its decision to reduce roles is not driven by AI-related efficiencies and is not simply a cost-cutting exercise.[1] Instead, HubSpot says it needs to move faster, stay closer to customers and focus resources on its highest priorities.[1] It says it assessed every role against the same six criteria before making decisions about reductions.[1]

HubSpot plans to organize product teams around customer outcomes rather than product hubs, with each team responsible for the full customer journey.[1] The company also plans to reduce management layers and move decisions closer to employees doing the work.[1] It says it will reduce fragmented ownership so teams can make decisions and execute faster and more clearly.[1] For product and operations leaders, the practical focus is on how responsibilities and decision rights are assigned across those teams—not only on how teams are named.

HubSpot’s board authorized the restructuring plan on October 1, 2026.[2] The company estimated costs of $65 million to $75 million, mainly for severance, notice periods, employee transition and benefits, and expected to recognize most charges in the fourth quarter of fiscal 2026.[2] HubSpot expected job eliminations to be substantially complete by the end of the first quarter of fiscal 2027, subject to local laws and consultation requirements.[2] It expected to make substantially all related cash payments by June 30, 2027.[2] HubSpot said it would exclude restructuring charges from non-GAAP financial measures.[2]

HubSpot says its severance offer is 20 weeks of base pay plus one week per year of service, capped at 30 weeks.[1] U.S. departing employees would receive five months of COBRA health benefits as a lump sum; employees elsewhere would receive five months of Modern Health benefits.[1] The company said departing employees would have access to six months of career-transition services and could keep their laptops and work-from-home equipment, with company data remotely removed from laptops.[1] HubSpot said the process and timing would vary by country and that every departing employee would have an opportunity to speak one-on-one with a manager within a day.[1]

HubSpot reaffirmed its third-quarter fiscal 2026 guidance for revenue, non-GAAP operating income and non-GAAP net income per share.[2] It also said it remained confident in meeting longer-term operating-margin targets announced at its September 17, 2026, Analyst Day.[2] CBS News reported that second-quarter revenue rose 20% to nearly $912 million.[3] These figures give finance teams context for the restructuring, but the company’s guidance and its estimate of restructuring costs are separate measures.[2]