Developer platform GitLab has laid off about 14 per cent of its workforce, equal to roughly 350 employees, as part of a major restructuring. The public technology company, that provides a comprehensive AI-powered DevSecOps platform, is exiting operations in 22 countries, reducing management layers, and investing heavily in infrastructure to handle the surge in AI-driven workloads.
Bill Staples, CEO, GitLab, explained that new agent-based AI systems are putting huge pressure on developer platforms, requiring a complete rebuild of GitLab’s core systems. This challenge is not unique to GitLab—competitors such as GitHub have also struggled with the flood of AI-powered submissions. To address this, GitLab has partnered with an AI lab to redesign its infrastructure, build APIs optimised for AI agents, and develop orchestration tools that coordinate work between human developers and AI systems.
The layoffs come at a time when many tech companies—including Intuit, Amazon, Cisco, Cloudflare, Meta, Microsoft, and Oracle—are cutting staff while reporting strong revenues. More than 100,000 tech jobs have already been eliminated this year, with AI cited as both the driver of growth and the reason for workforce reductions.
GitLab’s financial results reflect this paradox. In the latest quarter, the company reported $264 million in revenue, up 23 per cent year-on-year, with gross margins of 88 per cent. However, it expects to spend $30–35 million on restructuring costs as part of the transition.
The story highlights a growing trend: tech firms are reshaping their workforces to prioritise AI integration, even as employees face job losses in the process.