2023 Hubspot Layoffs: The Big Tech Layoff and HubSpot Partners
2023 Hubspot Layoffs: The Big Tech Layoff and HubSpot Partners. Learn how Matrix Marketing Group is helping during the Big Tech layoff and HubSpot partners.
The sky is not falling. You just might not be seeing the forest through the tree. It’s time for “block and tackling” mode. Back to the basics for many companies.
Hubspot announces layoffs on February 1, 2023.
PayPal and Hubspot join the ranks of big technology layoffs.
Layoffs by tech category
- AI/ML layoffs
- Autonomous Vehicles layoffs
- B2B SaaS layoffs
- Cloud Computing layoffs
- Creator Economy layoffs
- Crypto / Web3 layoffs
- Digital Health layoffs
- e-Commerce layoffs
- EdTech layoffs
- Hardware layoffs
- FinTech layoffs
- On-Demand Economy layoffs
- Marketplace layoffs
- Open Source layoffs
- Security layoffs
E-signature software company DocuSign on Thursday announced plans to cut around 10% of its workforce.
DocuSign had 7,461 employees in January 2022 before it announced an earlier round of layoffs last September that impacted 9% of its workforce. The company said the latest cuts will impact about 700 employees.
The tech industry was hit hard in 2022 and 2023, with many of the world’s biggest companies announcing layoffs and job cuts.
From PayPal to HubSpot, Salesforce to Microsoft, it’s clear that no company is immune from this wave of downsizing. With thousands of employees suddenly out of work, there are understandable concerns about how these decisions will impact people and businesses in the long term.
This blog post will explore what’s driving these layoffs from a business perspective and discuss potential solutions for those affected. We’ll also look at possible implications for the wider tech industry due to these changes.
Are you worried about the tech industry layoffs?
So how did Matrix handle this market news? It’s noise. We have shored up partnerships across the enterprise to plug holes in strategy, people, and technology.
The tech industry has seen a wave of job cuts in recent years, with some of the world’s biggest companies announcing layoffs and downsizing. We’ll explore what’s driving these decisions from a business perspective and discuss potential solutions for those affected.
You don’t have to worry anymore – this blog post will provide insight into how these changes impact people and businesses in the long term and the potential implications for the wider tech industry due to these changes. Get informed on all aspects of this issue to make informed decisions about your future career path or business strategy.
Please read our blog post to learn more about how layoffs impact the tech industry!
Let’s go through the list.
This website pulls it all together. layoffsyi.com
Layoffs by industry
2022 and 2023 Technology Layoffs from layoffs fyi
HubSpot Inc. HUBS, -0.57% said Tuesday Hubspot announce layoffs of 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.
Workday layoffs were about 3%.
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 several 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, +1.46%, has declined 10.8%.
Despite revenue rising 11% in 2022, during an announcement about its fourth quarter financial results, SAP said that due to net income dropping by 68%, the company would be undertaking some restructuring, resulting in layoffs.
Whereas companies such as Google or Salesforce announced across-the-board layoffs based on performance review criteria to reverse over-hiring during the pandemic period, CEO Christian Klein said that the job cuts are part of “a targeted restructuring” and not performance-based.
“We didn’t over-hire,” Klein said, noting that revenue grew faster than SAP employee growth in 2022. The layoffs are expected the affect around 2,800 staff or 2.5% of SAP’s global workforce.
After spinning off most of its infrastructure management division as a new business, Kyndryl, in November 2021 and selling some assets of its Watson Health business in January 2022, on the same day as IBM’s Q4 2022 results were announced, the company said it was eliminating 3,900 job roles or 1.5% of its global workforce.
On a conference call with analysts to discuss the results, CFO Jim Kavanaugh didn’t directly mention the job cuts, instead alluding vaguely to the situation by admitting the business would have some stranded costs to address in early 2023, resulting in a “modest” charge of about $300 million.
Later that day, in an interview with Bloomberg, Kavanaugh explained that those stranded costs related to staff left with nothing to do following the asset disposals, and as a result, they would be laid off from the company.
In a statement, a spokesperson for IBM said it was important to note the charge is entirely related to the Kyndryl spinoff and healthcare divestiture. “[The job cuts are], not an action based on 2022 performance or 2023 expectations,” the spokesperson said.
Google’s parent company, Alphabet, announced it cut 12,000 jobs, around 6% of its global workforce. An internal memo from Sundar Pichai said he takes “full responsibility for the decisions that led us here.”
The company will pay affected employees at least 16 weeks of severance and six months of health benefits in the US, with other regions receiving packages based on local laws and practices.
Four months later, Alphabet posted lower-than-expected numbers for its third financial quarter, falling behind revenue and profit expectations. However, while overall revenue growth slowed to 6% in the quarter for Alphabet, Google Cloud grew 38% year-on-year to $6.9 billion.
On Jan. 18, Microsoft CEO Satya Nadella confirmed in a blog post that the company would cut almost 5% of its workforce, impacting 10,000 employees.
The chief executive chalked up the downsizing maneuver to align its cost structure with its revenue structure while investing in areas the company predicts will show long-term growth.
The Seattle-based tech giant reported its slowest growth in five years for the first quarter of its fiscal 2023, due largely to a strong US dollar and an ongoing decline in personal computer sales, causing net income to fall by 14% to $17.56 billion from this time last year. Rising cloud revenue helped to soften Microsoft’s growth slowdown.
Google-backed, India-based social media startup ShareChat said it is laying off 20% of its workforce to prepare for oncoming economic headwinds.
“The decision to reduce employee costs was taken after much deliberation and in light of the growing market consensus that investment sentiments will remain very cautious throughout this year,” a spokesperson said.
The move is expected to impact over 400 employees out of the company’s approximately 2,200 staffers. The company did not disclose the roles and the exact number of workers affected by the decision.
Alphabet, Google’s corporate parent, also announced layoffs at its Mountain View, California-based robotics subsidiary Intrinsic AI, eliminating around 20% of its workforce or roughly 40 employees.
“This (downsizing) decision was made in light of shifts in prioritization and our longer-term strategic direction. It will ensure Intrinsic can continue allocating resources to our highest priority initiatives, such as building our software and AI platform, integrating the recent acquisitions of Vicarious and OSRC (commercial arm Open Robotics), and working with key industry partners,” according to a company statement.
Verily — a life sciences firm owned by Alphabet and headquartered in San Francisco — is downsizing its workforce by 15% to simplify its operating model. The move comes just months after the company raised $1 billion.
According to an email sent by CEO Stephen Gillett to all its employees, the downsizing is part of the company’s One Verily program, which aims to reduce redundancy and simplify operational aspects within the company.
As part of the new One Verily program, the company said it would move from multiple lines of business to one centralized product organization with increasingly connected healthcare systems.
Enterprise data management firm Informatica announced plans to lay off 7% of its workforce through the first quarter of 2023, the company said in a filing with the US Securities and Exchange Commission.
The move by Informatica, headquartered in Redwood City, California, will incur nonrecurring charges of approximately $25 million to $35 million in the form of cash expenditures for employee transition, notice period, severance payments, and employee benefits, the company filing showed.
The company expects the layoffs to be completed by the first quarter of 2023 but added that there might be limited exceptions.
At the beginning of 2023, San Francisco-based Salesforce announced it would lay off about 10% of its workforce, roughly 8,000 employees, and close some offices as part of a restructuring plan.
In a filing with the US Securities and Exchange Commission (SEC), the company disclosed that its restructuring plan calls for charges between $1.4 billion and $2.1 billion, with up to $1 billion of those costs being shouldered by the company in the fourth quarter of 2023.
In a letter sent by Salesforce’s co-CEO Marc Benioff and attached to the SEC filing, he told employees that as Salesforce’s revenue accelerated through the pandemic, the company over-hired and could no longer sustain its current workforce size due to the ongoing economic downturn. “I take responsibility for that,” Benioff said.
Seattle-based tech behemoth Amazon said it would be laying off more than 18,000 staff, with the bulk of job cuts coming later this month. The news confirmed a December Computerworld article reporting that Amazon layoffs were expected to mount to 20,000 people at all levels. While several teams are impacted, most job cuts will be in the Amazon Stores and People, Experience, and Technology (PXT) organizations.
According to a note from CEO Andy Jassy, the layoffs result from “the uncertain economy.” He also said that Amazon had “hired rapidly over the last several years.” Still, he added that the layoffs would help the company pursue more long-term opportunities with a stronger cost structure.
How will HubSpot layoff affect customers?
The recent announcement of layoffs at HubSpot has left employees and customers alike wondering what the implications will be on their businesses. For customers, these job cuts could mean a decrease in customer service and potential changes to product offerings. Furthermore, some may experience an increase in wait times when attempting to reach out for help and support.
For those who rely on HubSpot and its various products, the most significant impacts may be felt in customer success and support services. With fewer personnel available, existing customers may encounter delays when seeking assistance with their current software issues or when trying to upgrade or purchase new services. This is especially true for customers who require more in-depth technical support or product advice.
Additionally, fewer personnel within HubSpot’s customer success team can lead to longer wait times for feedback on specific questions or issues that arise during the onboarding process for new customers. This could result in a slower time to market for companies looking to take advantage of HubSpot’s products and services.
The layoff also raises questions about future product development cycles from HubSpot. With fewer people working on the product teams, any pending initiatives will likely be pushed back as resources are reallocated between other departments within the company. This could delay new features or updates being released, which could impact customer growth over time.
Finally, with fewer people focused specifically on customer success comes a greater risk of decreased customer satisfaction ratings due to longer wait times and understaffed support lines; this could lead to negative reviews and a decline in sales revenue over time if not addressed quickly by the company’s leadership team.
Ultimately, while there are multiple risks associated with HubSpot’s layoffs, they don’t necessarily signify an outright decline in the quality of service provided by the company or its solutions; instead, they serve as a reminder of the importance of having adequate staffing levels within any organization looking to provide top-notch service to its clients and customers.
How will HubSpot layoff affect HubSpot partners?
Chaos reigns down on junior inbound agencies. Jan 1 hit, and the phone rings from our Hubspot partners trying to explain the industry dynamics.
All I could do was sit and listen. Agreement on the current situation. But the debate started when I said this was a huge opportunity. She laughed. I explained. We have been through it all and are still here after 20 years.
The recent layoffs at HubSpot have caused concern for their partners, who rely on the company’s products and services to manage their businesses. With fewer personnel available, HubSpot partners may experience delays in service or product changes that could affect their operations.
While there are potential risks associated with decreased staffing levels, there are also opportunities for HubSpot partners to gain a competitive edge through improved customer service and more efficient problem-solving processes. Matrix Marketing Group can help.
Furthermore, while HubSpot has always had an extensive partner ecosystem of referral and reseller partners, they, too, may be impacted by the layoffs. However, remember the 80/20 rule.
With fewer people available to support them, partners may lack access to the same level of training and resources as before that are needed to promote and distribute HubSpot’s products and services effectively. As a result, the partner’s retail margins and profitability could be negatively affected in the short term if not addressed quickly by HubSpot’s leadership team.
However, despite these potential risks, there are also opportunities for HubSpot partners to benefit from the layoffs. Having fewer personnel can help streamline processes internally since fewer people will need to be consulted on decisions or given tasks; this could lead to faster turnaround times on projects, ultimately improving customer satisfaction ratings for existing and new clients.
Some laid-off staff members might decide to become independent consultants – after being certified as authorized resellers by Hubspot – which would provide more options for potential customers looking for tailored advice on how best to utilize HubSpot’s products and services.
Ultimately, while there are several risks associated with HubSpot’s layoffs that could potentially impact its partner network over time, it is important to remember that these decisions were made to improve efficiency across all departments within the company; this could mean improved customer experiences, as well as greater opportunity for those who choose, remain part of the HubSpot partner network going forward.
How is Matrix Marketing Group handling the HubSpot layoffs?
Matrix Marketing Group is taking proactive steps to ensure that our clients and partners remain on the cutting edge of digital marketing technology despite the recent HubSpot layoffs. As a HubSpot Global Partner, we take all necessary steps to provide our clients with uninterrupted services and support. Additionally, we’ve extended our offering across the extended enterprise for full-funnel and enterprise solutions.
Our experienced team of experts remains available to assist our clients in understanding how best to use HubSpot’s products and services and help them find innovative solutions to marketing challenges. We take a consultative approach and strive to understand each company’s unique business needs so that we can offer tailored advice that meets those individual needs.
At Matrix Marketing Group, we have also implemented several strategies to help ease the impact of the layoffs for HubSpot partners, including:
- Providing extra training and resources for existing customers
- Offering independent consulting services from certified resellers
- Developing innovative solutions for customers with limited access or resources
- Reducing customer onboarding times by streamlining processes.
We believe in supporting our clients through difficult times, which is why we remain committed to providing quality service and support throughout this transition period.
By remaining flexible in our approach and leveraging the expertise of both our team members and those of HubSpot, we can provide comprehensive solutions that meet the needs of each client’s circumstances.
We will also continue to monitor developments at HubSpot closely and keep abreast of any new products or updates they release so that our clients always have access to the latest digital marketing technology. We can ensure that our clients remain at the forefront of innovation in their respective fields by staying up-to-date on industry trends.
At Matrix Marketing Group, we must stay invested in our partners’ success even during challenging times. We understand that everyone has been affected differently by the current crisis; however, by taking proactive measures and offering tailored advice on how best to operate within this new landscape, we are confident that our clients will be able to take advantage of any opportunities presented by these layoffs while continuing their journey towards sustainable growth.
Major problems for CEO in technology about layoffs
The recent wave of layoffs in the technology industry has presented a major problem for CEOs, who have had to make difficult decisions about reducing their workforce.
This can be an especially difficult decision for those in the tech industry, where employees are often highly skilled and often considered integral team members. In addition to the emotional toll these decisions can take, rapid downsizing has numerous risks.
One of the primary risks of layoffs is a decrease in morale and productivity among remaining team members. After all, when people see colleagues being let go, they may worry that they could be next, leading them to become disengaged or even look for other opportunities. This could decrease productivity and potentially even a loss of key talent if employees decide to move on.
Another issue is that when companies lay off workers, they may miss out on potential opportunities due to a lack of resources or personnel available to pursue them. This can impact short-term successes and long-term growth potential if important strategic plans are not implemented or new initiatives are not undertaken because of insufficient staff.
Another risk is that if layoffs are done incorrectly, it could lead to legal action from dismissed employees or labor unions. Improperly handled terminations have resulted in costly lawsuits from wrongfully terminated employees and other similar problems. CEOs need to ensure that any layoffs align with their organization’s policies and procedures and local laws and regulations to avoid such problems.
Finally, there’s always the risk that cutting costs through layoffs may not lead to long-term cost savings; instead, it could simply put off inevitable expenses until later down the road when costs are likely even higher due to inflation or other factors. For example, retraining new hires when former staff return after the crisis passes could prove expensive; this means that while layoffs may help cut costs now, they may cost more money later on down the line.
As such, it’s important for CEOs in the technology sector—or any sector—to consider all potential risks before deciding whether or not layoffs are necessary and how best they should be conducted if they do decide to go ahead with them.
Doing so will ensure that any losses incurred during this difficult period are kept as minimal as possible while allowing organizations to survive during these uncertain times until business conditions improve again.
How Matrix Marketing Group can help with HubSpot Support and Hubspot Layoffs
Matrix Marketing Group offers various services to help businesses leverage the latest technology and optimize their processes for maximum efficiency and profitability. We are proud to have trained over 2,000 HubSpot users in the past 5 years and understand the unique challenges those operating within the tech sector face.
We are looking for HubSpot and Microsoft talent. Go here.
CEOs should consider a range of factors when considering a layoff plan, such as the financial impact on both current and former employees, potential legal action from dismissed staff or labor unions, any missed opportunities due to lack of personnel available, the decrease in morale and productivity among remaining staff and the company’s long-term viability.
CEOs should consider whether layoffs will lead to immediate cost savings or if they would be pushing expenses off until later down the road with new training costs for rehired employees. It is also important to assess if there are alternative ways to reduce costs without resorting to layoffs.
How are big tech layoffs impacting employees?
Big tech layoffs are having a significant impact on employees. Many who have lost jobs find themselves suddenly unemployed, which can lead to financial instability and difficulty finding new employment. For those still employed, there is often stress and uncertainty surrounding their job security and potential pay-cuts or other negative changes in working conditions.
What is the long-term impact of layoffs on businesses in the technology sector?
The long-term impact of layoffs on businesses in the technology sector can be severe, ranging from a decrease in morale and productivity among remaining staff to potential legal action from dismissed employees or labor unions.
What risks come with layoffs in the technology industry?
The risks associated with layoffs in the technology industry include a decrease in morale and productivity among remaining staff, potential legal action from dismissed employees or labor unions, missing out on potential opportunities due to lack of personnel available, and increased costs later on due to retraining new hires when former staff return.
Can layoffs result in long-term cost savings or push expenses off until later down the road?
Layoffs can result in long-term cost savings and push expenses off until later, depending on the situation. In some cases, cutting costs through layoffs may result in immediate cost savings. Still, it can also lead to increased costs when former staff return and need to be retrained or if there are costly lawsuits from wrongfully terminated employees. CEOS need to consider all potential risks before deciding whether or not layoffs are necessary.