Item 2.05. Costs Associated with Exit or Disposal
Activities.
On January 25, 2023, the Board of Directors of HubSpot, Inc.
(the “Company”) authorized a restructuring plan (the “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 our workspaces.
The Company estimates that it will incur charges of approximately
$72.0 million to $105.0 million in connection with the
Plan, consisting primarily of cash expenditures. $24.0 million
to $31.0 million of the charges under the Plan are related to
employee severance costs and $48.0 million to
$74.0 million 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.
A Letter to the Company’s employees from Yamini Rangan, the
Company’s Chief Executive Officer, regarding the reduction of the
Company’s workforce under the Plan is attached to this Current
Report on Form 8-K as
Exhibit 99.1 and is incorporated by reference.
Safe Harbor Statement
Information provided in this Current Report on Form 8-K including information concerning
the expected amount and timing of charges and cash expenditures and
expected completion of the contemplated actions are
“forward-looking statements” as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based upon the Company’s current plans, assumptions, beliefs, and
expectations. Forward-looking statements are subject to the
occurrence of many events outside of the Company’s control. Actual
results and the timing of events may differ materially from those
contemplated by such forward-looking statements due to numerous
factors that involve substantial known and unknown risks and
uncertainties.
These risks and uncertainties include, among other things, the risk
that the restructuring costs and charges may be greater than
anticipated or incurred in different periods than anticipated; the
risk that the Company’s restructuring efforts may adversely affect
the Company’s internal programs and the Company’s ability to
recruit and retain skilled and motivated personnel, and may be
distracting to employees and management; the risk that the
Company’s restructuring efforts may negatively impact the Company’s
business operations and reputation with or ability to serve
customers; the risk that the Company’s restructuring efforts may
not generate their intended benefits to the extent or as quickly as
anticipated; and other risks and uncertainties included in the
reports on Forms 10-K,
10-Q and 8-K and in other filings the Company
makes with the Securities and Exchange Commission from time to
time, available at www.sec.gov. Forward-looking statements should
be considered in light of these risks and uncertainties. Investors
and others are cautioned not to place undue reliance on
forward-looking statements. All forward-looking statements
contained herein speak only as of the date hereof. The Company
assumes no obligation and does not intend to update these
forward-looking statements, except as required by law.
Item 9.01 Financial Statements and Exhibits.