GitLab, the software company and rival to GitHub, has joined the ongoing wave of tech layoffs. As reported by Business Insider, the company has announced a restructuring plan that will lead to job cuts. GitLab has unveiled a sweeping restructuring plan to adapt to what CEO Bill Staples calls the “agentic era” of software engineering. The company, which had 2,580 employees as of January, said the process will conclude by June 1, with shares falling 7% after hours following the announcement.
Details of the Restructuring
In a memo shared with employees and investors, Staples stated that the restructuring would be conducted “openly,” including a voluntary separation window. He also outlined key operational changes:
- Flattening the org chart by removing up to three layers of management.
- Reorganizing R&D into about 60 smaller, empowered teams with end-to-end ownership.
- Embedding AI agents into internal workflows to automate reviews, approvals, and handoffs.
- Reducing global footprint by cutting up to 30% of countries where GitLab has small teams.
Strategic Shift Towards AI
Staples emphasized that GitLab is evolving its strategy for the future of software engineering, where “software will be built by machines, directed by people.” He also noted that as the cost of producing software collapses, demand is increasing rapidly, with developer platform markets now measured in “hundreds of dollars per user per month and headed to thousands.” “The supply of deep technical problems is multiplying, and the engineers who can solve them will be among the scarcest and most valuable talent in the market,” Staples wrote.
Architectural Bets
GitLab outlined five major technology bets to prepare for machine-scale workloads:
- Machine-scale infrastructure to handle agent-rate work.
- Lifecycle orchestration to coordinate agents across planning, coding, and deployment.
- Context-driven data models to improve AI efficiency.
- Built-in governance for security and compliance.
- Hybrid platform modes spanning human-owned, agent-assisted, and agent-autonomous work.
Impact on Customers and Investors
Staples assured customers that support, contracts, and roadmaps remain unchanged, while promising faster innovation. For investors, he described the restructuring as a deliberate move to position GitLab as the “trusted enterprise platform for software creation in the AI era.” The final scope and financial impact of the restructuring will be shared on GitLab’s June 2 earnings call.
CEO’s Full Memo
GitLab CEO Bill Staples shared the complete memo with customers and investors, detailing the changes. The memo, titled “GitLab Act 2,” outlines the company’s core beliefs, architectural bets, and delivery plans. It reaffirms Q1 and full-year FY27 guidance and promises updates on the restructuring’s financial impact on June 2.
The memo also highlights 10 core beliefs, including the future of software being built by machines directed by people, the multiplication of demand for software in the agentic era, and the increasing importance of engineers. Additionally, it details five architectural bets and the company’s commitment to a flexible business model and a culture of excellence.
For customers, the memo assures continuity of support and contracts, while promising faster innovation. For investors, it positions GitLab as the leading platform for software creation in the AI era.
