GitLab's CEO announced plans to lay off an unspecified number of employees as the software company restructures for what it calls 'the agentic era.' Shares dropped 7% after hours following the Monday announcement.
The restructuring, outlined in a memo from CEO Bill Staples, aims to flatten the organizational chart by removing 'up to three layers of management.' The company, which had 2,580 employees as of January, expects to complete the cuts by June 1.
Research and development teams will be reorganized into roughly 60 'smaller, more empowered teams with end-to-end' responsibility. Staples acknowledged the process 'creates real uncertainty for our team over the next few weeks' and is being conducted 'openly,' including a voluntary separation window.
The layoffs mark another tech industry reduction amid shifts toward AI-driven development. GitLab's workforce cuts join a broader trend of software companies restructuring to focus on emerging technologies like agentic AI systems.
No specific number of affected employees or financial impact was disclosed. The memo did not detail which departments beyond R&D would face cuts.