HubSpot Inc.
HUBS,
said Tuesday it would layoff about 7% of its workforce, or about 500 employees, as part of a plan to cut costs. The internet marketing software company said the job cuts are expected to be completed by the end of the first quarter of 2023. The company said it was also consolidating office leases to create “higher density” in its workspaces. The company expects to record charges of $72 million to $105 million for the moves, including $24.0 million to $31 million related to severance costs and $48 million to $74 million related to lease consolidation. In a letter to employees, Chief Executive Yamini Rangan said while growth was expected to slow in 2022, the deceleration was faster than expected. “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,” Rangan wrote. “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 stock has lost 28.6% over the past 12 months, while the S&P 500
SPX,
has declined 10.8%.
