HubSpot Cuts 660 Jobs In AI Restructuring
- Reference: 0186053774
- News link: https://slashdot.org/story/26/10/06/2055209/hubspot-cuts-660-jobs-in-ai-restructuring
- Source link:
> The layoffs come as investors have spent months questioning whether AI will reduce the need for businesses to pay for software like HubSpot's, a fear [2]dubbed the "SaaSpocalypse ." HubSpot's platform helps companies manage their customers, sales, and marketing. The company was removed from the FTSE All-World Index (USD) last month after a decline in its stock price, a report from Simply Wall St noted. The stock is down more than 43% this year as of this writing.
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> Yamini Rangan, CEO of HubSpot, explicitly [3]told employees in a memo that the layoffs were "not driven by AI-related efficiencies." Rather, the aim was to focus on "aligning our organization with our strategy and how we need to operate going forward," Rangan wrote. She added that the goal is to "build a flatter organization with fewer layers" by cutting back on management.
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> Still, artificial intelligence has been central to the company's concerns. In August, Rangan [4]blamed AI for why the company "got off to a slow start" in April as HubSpot was trying to adjust its product and pricing. "We're in the middle of a real transition to AI, and we are making deliberate choices to lead in it," she said on an earnings call.
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> The restructuring is estimated to cost between $65 and $75 million, mostly in severance packages. The company said that laid-off employees will receive 20 weeks of base pay, one week per year of service (capped at 30 weeks), five months of COBRA and Modern Health healthcare benefits, and they will be allowed to keep their laptops.
[1] https://www.fastcompany.com/91619102/hubspot-layoffs-today-jobs-slashed-stock-struggles-why
[2] https://tech.slashdot.org/story/26/03/02/048218/whats-driving-the-saaspocalypse
[3] https://www.hubspot.com/company-news/company-update
[4] https://stocktwits.com/news-articles/markets/equity/hubs-stock-tanks-most-10-years-wall-street-hubspot-penalty-box/cZoBROSRJJ2
Severance is pretty reaonable (Score:2)
"laid-off employees will receive 20 weeks of base pay, one week per year of service (capped at 30 weeks), five months of COBRA and Modern Health healthcare benefits, and they will be allowed to keep their laptops."
Most small tech companies gave much less than that to employees affected by a layoff.
Heck, after 27 years at one company all I got was my back pay, and vacation pay when the reaper finally came for me. The company was on the decline so I guess that was to be expected. Had to live off savings for
100% (Score:2)
HubSpot appears to be one of the worst Email spam entites in the world. I block them completely. I wish they would cut 100% of their jobs and just go away. Constant Contact can follow along with them. Grrrrrr
What does HubSpit do again? (Score:1)
I canâ(TM)t keep track of companies founded 20 years ago.
Re: (Score:2)
Good question. I went to their site and still can't figure out what they do.
HubSpot brings together your teams, tools, AI, and customer data on the same platform, so every customer interaction drives growth. Marketing generates better leads. Sales wins more deals. Customers stick around.
Re: (Score:2)
We use Hubspot. Here's what we use it for:
- the "live chat with support person" bubble on our web application
- single funnel for incoming/outgoing support tickets & support communications with our customers
Adopting it was an old decision.
We would love to not use hubspot; the service delivered vs. the ongoing costs seem like a bad deal now.
At some point, we'll get around to migrating to something else.
As much as I complain about AI...Saas is... (Score:2)
AI is also a poster child for the problem of SaaS. Saas while possibly lucrative, creates a twisted relationship with your users. In many cases, the users become the product and there is a perversion of the value of work.
Netflix, Spotify, etc are great. But with the buffet style... people become mentally prohibited form purchasing the music video or other creative product. Furthermore, that savings is taken from the artist hurting the whole ecosystem.
In the case of AI platforms, if you are not paying yo
"Aligning" (Score:2)
Every time I read that a company is "Aligning" the only thing I can assume that is being aligned is the C-suite's pocket books.