GitLab has introduced a significant restructuring that features chopping roughly 350 jobs — about 14% of its workforce — and exiting operations in 22 international locations, because it shifts focus towards synthetic intelligence-driven software program improvement, in line with a Occasions of India report.
The corporate stated the transfer is a part of a broader technique to align its enterprise with what CEO Invoice Staples described because the “agentic period,” the place AI programs more and more tackle duties corresponding to coding, reviewing and managing software program workflows.
Alongside the layoffs, GitLab is considerably decreasing its world footprint, with the exit from 22 international locations shrinking its worldwide presence by about 37%. The corporate will proceed serving prospects in these areas via companion networks as a substitute of sustaining direct operations.
The restructuring comes regardless of robust monetary efficiency. GitLab reported first-quarter income of $264.2 million, up 23% year-on-year, beating analyst expectations. Its inventory additionally rose in after-hours buying and selling following the announcement, taking its market capitalisation previous $5 billion.
Additionally learn: Uber cuts 23% of HR and recruitment workers in restructuring transfer
Internally, the corporate is flattening its organisational construction by eradicating administration layers and reorganising its analysis and improvement perform into smaller, extra autonomous groups. On the identical time, it’s embedding AI brokers into inner workflows to automate processes corresponding to code critiques, approvals and operational handoffs.
Staples has stated the choice will not be purely about cost-cutting however about reallocating assets towards AI investments. A lot of the financial savings from the restructuring are anticipated to be reinvested into analysis, improvement and growth of the corporate’s AI choices, notably its Duo Agent Platform.
The corporate expects to incur restructuring prices of $30 million to $35 million, largely associated to severance and organisational adjustments.
GitLab’s transfer displays a broader shift throughout the tech business, the place corporations are reshaping operations and workforce constructions in response to speedy advances in synthetic intelligence. With AI brokers anticipated to play a rising position in software program improvement, companies are more and more investing in leaner, extra automation-driven fashions.
The restructuring is anticipated to be largely accomplished by the top of the present fiscal 12 months.
Learn extra: AI layoffs 2026: Amazon, Meta, Oracle, Cisco amongst tech companies chopping jobs
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