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HubSpot (NYSE:HUBS) has become the latest tech firm to announce job cuts, with the company revealing in a filing that it has authorized a restructuring plan that will result in a workforce reduction of 7%.
The company will let go of approximately 500 employees as it aims to reduce operating costs and enable investment in key areas for long-term growth while driving continued profitability.
The plan also includes a lease consolidation to create higher density across the company’s workspaces.
HubSpot Chief Executive Yamini Rangan sent a letter to the company’s employees, which said in 2022, “things took a downward turn” for the company and economy.
“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,” Rangan added in the letter.
HubSpot estimates it will incur charges of approximately $72 million to $105 million in connection with the plan, consisting primarily of cash expenditures.
The workforce reduction is expected to be mostly complete by the end of the first quarter, while the lease consolidation is expected to be completed in 2023.
HubSpot shares are down over 1% just before midday.
