HubSpot (NYSE:HUBS) plans to eliminate approximately 7% of its current workforce as part of a restructuring plan designed to reduce operating costs while driving continued profitability. The actions associated with the workforce reduction are expected to substantially complete by the end of the first quarter of 2023. The plan also calls for a lease consolidation to create higher density across HubSpot’s (HUBS) workspaces. The lease consolidation measures are expected to be fully completed in 2023. Overall, the move will result in charges of approximately $72M-$105M, consisting primarily of cash expenditures. In a note to employees, CEO Yamini Rangan stated that: “We came into 2022 anticipating growth would slow down from 2021, but we experienced a faster deceleration than we expected. The year was challenging due to a perfect storm of inflation, volatile foreign exchange, tighter customer budgets, and longer decision making cycles. [..] Throughout 2022, we focused on execution and operated differently to match the environment we were in. We slowed hiring, minimized travel, cut discretionary spend, and repurposed teams with excess capacity. While all of these changes were necessary, they are no longer sufficient.” Shares of the software company were down 3% around 10 a.m. ET
Other tech lay offs announced today include: Workday to eliminate ~3% of global workforce and NetApp to eliminate ~8% of global headcount
