HubSpot plans to cut 500 jobs worldwide

Multinational sales and marketing software company HubSpot is the latest big tech to announce layoffs, with 7 percent – or 500 employees – expected to be laid off.

The company employs around 1,000 people at its Dublin location. The company has not yet commented on its Irish plans.

“We have made the difficult decision to reduce HubSpot’s workforce by 7 percent,” a spokesman told the Irish Independent.

“This is an incredibly tough and sad week for our teammates who are leaving and our focus right now is on supporting them through this transition.”

In an email to employees, HubSpot CEO Yemeni Rangan said the cuts were necessary.

“I am deeply sorry to take this step,” he wrote.

“Our business was booming during the pandemic, but things went downhill in 2022. We entered 2022 expecting growth to slow from 2021 onwards, but we experienced a faster deceleration than expected. The year was challenging due to a perfect inflation storm, volatile FX, tighter customer budgets and longer decision cycles.

“We’ve grown headcount faster than revenue on a number of teams. We were optimistic about our headcount growth and underestimated the impact of the slowdown in 2022. Unfortunately, the level of uncertainty in customer demand now tells us that we may have tougher times ahead. We must be prepared to weather this storm.”

The company added that the cuts “are aimed at reducing operating costs and allowing investment in key opportunities for long-term growth while increasing profitability.”

The company said it also wants “lease consolidation to create higher density” in its workspaces.

It said it expects to complete the cuts by the end of the first quarter of 2023, “subject to local law and consultation requirements.”

Lease consolidation plans are expected to be fully completed in 2023.