HubSpot to cut 500 jobs worldwide

The company has not disclosed its plans for Ireland.

At its Dublin base, the company employs around 1,000 people. The company has not yet made any comment on its Irish plans.

“We’ve made the difficult decision to reduce HubSpot’s workforce by 7pc,” a spokesperson told the Irish Independent.

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

In an email to staff, HubSpot’s CEO Yamini Rangan said the cuts were necessary.

“I am deeply sorry to be taking this step,” she wrote.

“Our business boomed throughout the pandemic but in 2022, things took a downward turn. 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.

“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 company added that the cuts are “designed to reduce operating costs and enable investment in key opportunities for long-term growth while driving continued profitability”.

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

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

Its lease consolidation plans are expected to be fully completed in 2023.

In the US, affected employees received an email with confirmation. Outside the US, employees were to receive an email confirming the next steps.

"Each region has different processes and timelines we’ll be following,” said Ms Rangan in her staff email.

A spokesperson for the UK and Ireland told the Irish Independent there would be no further specifics offered about locations or positions affected.

“We have no further comment at this time beyond the information shared and will not be sharing any specifics,” he said.

The HubSpot cuts are the latest in a wave of layoffs to affect the global tech sector, with reductions in Meta, Google, Microsoft, Amazon, Salesforce, Twitter and others as interest rates have risen and growth prospects have slowed across the industry.