HubSpot (NYSE:HUBS) layoffs are hitting the software company’s employees as it looks to cut costs due to the current economic climate.
This will see HubSpot reduce its headcount by 7%. That represents more than 500 of the company’s employees. That comes as it plans to close its Cambridge, Massachusetts headquarters in favor of keeping another location in the area open.
HubSpot expects the layoffs to be complete by the end of the first quarter of 2023. It already cut 500 jobs on Tuesday, which makes up a large portion of the layoffs the company has planned.
Investors will also note that the HubSpot layoffs come after a hiring spree. Like many tech companies, HubSpot saw a significant expansion of its workforce to deal with increased demand during the pandemic. Unfortunately, it couldn’t maintain those numbers as its business begins to slow.
What’s Behind the HubSpot Layoffs?
Yamini Rangan, CEO of HubSpot, said the following in a letter to employees obtained by Boston.com:
“We came into 2022 anticipating growth would slow down from 2021, but we experienced a faster deceleration than we expected. 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.”
HUBS stock is up 1.3% on Wednesday morning alongside the layoff plans.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.