HubSpot has become the latest enterprise software provider to announce layoffs this year, as growing worries about artificial intelligence eroding revenue continue to build across the market.

In a blog post, HubSpot (ASX: HUBS) CEO Yamini Rangan announced that the company will cut 660 employees, representing 7% of its total workforce. The restructuring will also involve reducing some management layers and realigning its product teams.

Rangan stated in the blog that the layoffs are "not just a cost-cutting measure" and did not stem from HubSpot using AI internally to replace work that was typically done by human employees.

The layoffs at HubSpot (ASX: HUBS) come as some investors worry that traditional enterprise software providers are under threat from artificial intelligence. Many of HubSpot's peers, including Salesforce, ServiceNow, and Atlassian, have also carried out layoffs this year.

HubSpot (ASX: HUBS) primarily sells customer management software to small and medium-sized businesses, and its share price has fallen more than 40% since the start of the year. Compared with larger enterprises that have stricter requirements for management and regulatory compliance, these types of customers may be more inclined to build their own CRM applications and features through "vibe coding."