HubSpot Cuts Nearly 660 Jobs to Reorganize Around Outcomes
The company said it will reduce its team by about 7% as it shifts product teams away from hubs toward customer outcomes.
HubSpot, Inc. (HUBS) said it would reduce the size of its team by about 7%, cutting nearly 660 employees, as it reorganizes product teams around customer outcomes rather than hubs, flattens management layers, and creates agile teams with clearer ownership.
Chief Executive Officer Yamini Rangan said the company has shifted over the past year from building software that helps customers grow to delivering outcomes with AI, a change that is transforming product, pricing, and how it serves customers. The company said it also needs to change how it is organized to compete, move faster, stay closer to customers, and focus resources on its highest priorities.
The three operating changes the company described were to organize product teams around outcomes such as generating demand, winning deals, delighting customers, and scaling growth, with each team owning the full customer journey; to reduce management layers so decisions sit closer to the people doing the work; and to cut fragmented ownership so teams have context, capabilities, and authority to execute.
Rangan said the decision is not driven by AI-related efficiencies and is not simply a cost-cutting exercise. The company said it has been disciplined about growing headcount more slowly than revenue and will continue to do so, and that the change is about where and how it invests so it can put more resources behind its biggest opportunities.
Departing employees were told they would generally receive 20 weeks of base pay plus one week per year of service, up to 30 weeks, along with five months of health benefits, six months of career-transition outplacement, and the option to keep company laptops and work-from-home gear. U.S. employees whose roles were affected were to receive an email within 15 minutes of the announcement, with a one-on-one conversation with a manager the same day.
The workforce cut followed a quarter in which growth slowed. Second-quarter revenue was $911.7 million, up 20% on an as-reported basis and 17% in constant currency from a year earlier, after first-quarter revenue of $881.0 million, up 23% as reported and 18% in constant currency.
Subscription revenue, the bulk of the business, was $894.0 million in the second quarter, up 20% as reported, after $862.3 million in the first quarter, up 23%. Professional services and other revenue was $17.7 million, up 8% as reported, after $18.7 million in the first quarter, up 22%.
GAAP operating income was $43.3 million in the second quarter, compared with a GAAP operating loss of ($24.6) million a year earlier. Non-GAAP operating income was $185.3 million, up 44% from the year-ago period. GAAP operating margin was 4.8%, compared with (3.2%) a year earlier. Non-GAAP operating margin was 20.3%, compared with 17.0%.
GAAP net income was $43.3 million, or $0.86 a share, versus a GAAP net loss of ($3.3) million, or ($0.06) a share, a year earlier. Non-GAAP net income was $164.8 million, or $3.26 a share, up 40% from $117.3 million a year earlier.
Customers grew to 306,446 as of June 30, 2026, up 14% from a year earlier, after 299,458 as of March 31, 2026, up 16% from March 31, 2025. Average subscription revenue per customer was $11,800 in the second quarter, up 4% as reported from the year-ago quarter, after $11,722 in the first quarter, up 6%. Calculated billings were $929.7 million in the second quarter, up 14% as reported and 17% in constant currency, after $912.3 million in the first quarter, up 19% as reported and 17% in constant currency.
Cash and cash equivalents, short-term, and long-term investments were $1.4 billion as of June 30, 2026, down from $1.8 billion as of March 31, 2026. The company repurchased $531.9 million of common stock in the second quarter, after $211.0 million in the first quarter. Operating cash flow was $222.8 million in the second quarter, compared with $164.4 million a year earlier. Non-GAAP operating cash flow was $227.5 million and non-GAAP free cash flow was $167.9 million.
On August 3, 2026, the Board authorized an additional share repurchase program of up to $1.0 billion over up to 24 months.