Synopsis
GitLab is cutting jobs to redirect resources towards the growing market for AI agents, aiming to capitalize on emerging "agentic" opportunities. The company plans to reduce management layers and reorganise R&D teams, integrating AI agents to automate internal workflows and improve efficiency. While some roles may be enhanced by AI, others will be expanded to maintain momentum.Shares of the company fell more than 8% in after-hours trading following the announcement.
In a memo to employees on Monday, chief executive officer Bill Staples said the move is not primarily about cost-cutting, but about repositioning the company to capitalise on emerging AI-driven opportunities, according to Bloomberg.
Staples added that the move was not intended as an AI optimisation or cost-cutting measure. Instead, he said the company plans to reinvest most of the savings back into the business to accelerate its opportunity in the emerging “agentic” era, referring to the use of AI agents to automate and carry out business tasks.
As part of the restructuring, GitLab plans to reduce layers of management, reorganise its research and development teams, and scale back the number of countries in which it operates.
The company will also integrate AI agents more deeply into its internal workflows, automating processes such as reviews, approvals and operational handoffs to improve speed and efficiency.
Staples said the company has not yet determined how many roles will be affected. More details are expected to be shared on June 2, when GitLab reports its quarterly earnings, Bloomberg report mentioned.
The company will reevaluate staffing levels across roles to better optimise for speed and improve customer outcomes. The CEO noted that while AI could enhance and accelerate existing work in some areas, the company would need to expand certain roles in others to maintain momentum.
The development follows a series of cuts announced by tech and software firms. AI-powered language translation company DeepL said that it would cut about a quarter of its workforce due to AI-driven shifts.
About 250 of Cologne-based DeepL's 1,000 employees would lose their jobs, chief executive officer and founder Jarek Kutylowski said in a post on LinkedIn.
Software provider Kyndryl also said it would cut jobs as part of a new cost-saving plan.
ET reported that Freshworks is laying off 11% of its global workforce, impacting nearly 500 employees, as it increases AI use across operations.
Tech companies around the world are increasingly trimming their workforce; over 93,000 roles cut across 106 companies in the first five months of 2026.
