This Tuesday, the CEO of Hubspot, Yamini Rangan, announced via a blog post that his firm will lay off approximately 500 team members.
The prominent CRM provider works with clients like Reddit, Eventbrite, and the World Wildlife Fund.
The layoffs are imminent, cutting the firm’s staff by seven percent.
Hubspot came to its decision following a tough 2022. The firm saw record acceleration in 2021 after the pandemic, although operations decelerated notably in 2022, leading to layoffs.
For many technology firms, 2022 was a challenging year economically and politically. Firms such as Meta and Bytedance are facing federal action in the US, and many digital technology vendors like Google and Snap have seen stock drop leading into 2023.
We grew headcount faster than revenue in 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 more challenging times ahead. We need to set ourselves up to weather this storm.
The firm aims to reduce unrequired investments in order to double down on product innovation and customer growth.
Reasons for Hubspot Reductions
Hubspot is reducing its number of staff to focus on business needs, capacity, performance, and organizational structure.
Despite letting go of its chosen seven percent, Hubspot is providing its laid-off staff with job transition support, including severance pay, medical benefits, equity, and career support.
🙏 My personal thanks to all of those impacted by the HubSpot layoffs today (about 7% of the team).
Appreciate your contributions.
It has been 16 years since HubSpot was founded, and we are making the necessary changes to (hopefully) have 16 more of Solving For The Customer.
— dharmesh (@dharmesh) January 31, 2023
The Co-founder and CTO of HubSpot, Dharmesh Shah, noted that the firm appreciates the contributions of its removed staff, explaining the recent “necessary changes” should secure Hubspot with a further 16 years of successful operations.
Even though the firm is reducing staff, Hubspot continues to innovate its product portfolio. Today, software partners Resonate integrated Chat GPT into its application, giving Hubspot customers access to AI/prompt-based decision-making and problem-solving.
Thank you all for your support! We are thrilled to announce that our newest HubSpot App, which brings OpenAI/GPT-3 to HubSpot Workflows, was the Product of the Day #3 on ProductHunt 🙏 If you missed the announcement, you can check it out here https://t.co/adEentUlHf pic.twitter.com/TuF68iqd3h
— Resonate – Hubspot Partner (@ResonateHQ) February 2, 2023
Resonate provides its third-party AIssistify application that integrates GPT into the HubSpot CRM platform. The service gives Hubspot customers an AI assistant that attempts to streamline summarizing, data formatting, and translation workflows.