HubSpot announces restructuring plan, 7% workforce reduction

In a regulatory filing, the company announced that on January 25, the Board of Directors of HubSpot authorized a restructuring plan that is designed to reduce operating costs and enable investment in key opportunities for long-term growth while driving continued profitability. The Plan includes a reduction of the company’s current workforce by approximately 7% and a lease consolidation to create higher density across its workspaces. The company estimates that it will incur charges of approximately $72M-$105M in connection with the Plan, consisting primarily of cash expenditures. $24M-$31M of the charges under the Plan are related to employee severance costs and $48M-$74M of the charges are related to lease consolidation. The actions associated with the workforce reduction under the Plan are expected to be substantially complete by the end of the first quarter of 2023, subject to local law and consultation requirements. The actions associated with the lease consolidation under the Plan are expected to be fully completed in 2023. The estimates of the charges and expenditures that the company expects to incur in connection with the Plan, and timing thereof, are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual amounts may differ from the estimates discussed above.