GitLab, the software company known for its DevSecOps platform that helps developers manage coding projects, announced on Monday a major restructuring that includes workforce reductions to redirect resources toward growth in what it calls the "agentic era" of artificial intelligence. CEO Bill Staples detailed the changes in a memo to employees and investors, emphasizing a shift where "software will be built by machines, directed by people." The company, which employed 2,580 people as of January, plans to complete the cuts by June 1, though the exact number of jobs affected remains unspecified.
According to the CEO's memo, as reported by Business Insider, the restructuring involves four key operational changes. GitLab aims to reduce its presence in up to 30% of countries where it has small teams, shifting customer service in those markets to its partner network. The organization will also flatten its structure by removing up to three layers of management in some areas, bringing leaders closer to the work. Research and development teams will be reorganized into around 60 smaller, more empowered units with end-to-end ownership, alongside role right-sizing to optimize team shapes and sizes.
Staples described the process as happening "openly," including a voluntary separation window that has left employees in a state of uncertainty. As noted in discussions on Hacker News and the company's own blog post titled "GitLab Act 2," workers have about seven days to apply for separation under terms that are not yet fully defined, with no guarantee of acceptance. This approach, while intended to improve outcomes, has drawn criticism for creating limbo for the workforce.
The moves come amid a broader market shift that GitLab sees as the largest in 20 years, positioning itself as the trusted enterprise platform for software creation in the AI era. Shares in the company dropped 7% in after-hours trading following the announcement, according to Business Insider. Staples assured investors that the majority of savings from the cuts will be reinvested into growth and technological initiatives.
GitLab plans to provide more details on the restructuring's scope and financial impact, along with its first-quarter results, during an earnings call on June 2. The changes affect not only employees facing potential job losses but also the company's global footprint and operational efficiency, as it bets heavily on AI agents to drive future innovation in software development.