HubSpot to fire 7 per cent of its workforce, CEO Yamini Rangan calls it a difficult decision to process

The wave of layoffs in the tech industry is far from drying out. Since the past couple of months, thousands of employees in the tech sector have lost their jobs and many more fear the inevitable. Software company HubSpot has now announced its decision to lay off 7 per cent of its workforce globally. This means that around 500 people will be losing their jobs.

HubSpot's CEO, Yamini Rangan, announced the same in a company-wide email sent to employees.

CEO Yamini Rangan's email to HubSpot employees

Beginning the email on a grim note, Yamini Rangan wrote, "I'm writing to share some really sad news and the hardest decision we've had to make in HubSpot's history. We've decided to reduce the size of our team by 7% and will be saying goodbye to approximately 500 HubSpotters. If you are one of those employees in the U.S., you will get an email within the next 15 minutes with information and support. In other countries, this process will vary based on local laws and practices. I am deeply sorry to be taking this step."

She then goes on to add how the decision is a difficult one to process and goes on to sharing what prompted the team to take this drastic step.

"For a company that prides itself on culture, this is a difficult decision to process. And today will be an incredibly difficult day for our teammates leaving HubSpot. So, let me share why we made this decision, what principles guided us, what we are doing to support employees who are leaving, and what's next for HubSpot," she wrote.

What led to HubSpot's downfall?

In the letter, the CEO explains that even though their business boomed in the pandemic, HubSpot faced a rapid declaration in 2022 that was not expected. She then added that they tried to operate differently to match the environment by 'slowing down hiring, minimising travel, cut discretionary spending, and repurposing teams with excess capacity'. However, the changes haven't been sufficient and they must reduce their workforce to meet the company's investment demands.

What will the impacted employees get?

The impacted employees will be getting "five months of severance pay, plus an additional week for every year that they have been with HubSpot up to a 7 month total severance period. For managers, the company will pay out the management bonus following their standard bonus structure."

Medical benefits will also be extended to the laid off employees 'through the severance period of up to 5 months, where possible based on region, as well as access to the EAP (Employee Assistance Program) and Modern Health for mental health support and career coaching'.

The employees can also keep their work laptops and any work from home gear like monitors and keyboards.

Finally, HubSpot is partnering with a third party to 'provide coaching, resume building and guidance, an opt-in talent directory, and job seeking support' for the impacted employees.

The company also announced that they will set up one on one conversation for any departing employee who wants to have a live conversation with a HubSpot manager.