GitLab laid off approximately 350 employees — about 14% of its workforce — on June 3, 2026, as part of a restructuring effort the developer platform first announced in May 2026.
The cuts accompany GitLab’s exit from 22 countries, a flattening of management layers, and increased investment in infrastructure to handle the demands of AI-driven workloads. CEO Bill Staples said the company has begun what he called “a generational rebuild of git” to support what he described as 100x growth requirements driven by AI agents operating at machine scale.
“Agents work at machine scale, and they’re pushing competitors to the brink,” Staples said on a conference call. “This is a scale requirement that didn’t exist before and has become a real pain point for every team on their agentic journey.”
GitLab has partnered with an unspecified AI lab to redesign its infrastructure and build APIs optimized for AI agents to store and retrieve code context. The company is also developing orchestration tools to coordinate work between AI agents and human developers, and is embedding governance tools directly into its platform.
Despite the restructuring, GitLab reported first-quarter 2026 revenue of $264 million, up 23% year over year, with gross margins of 88%. The company expects to incur between $30 million and $35 million in restructuring charges.
GitLab is one of many tech companies — including Amazon, Cisco, Meta, Microsoft, and Oracle — that have cited AI investment as a reason for workforce reductions in 2026. The tech industry has already cut more than 100,000 jobs this year, according to Statista, and is on pace to exceed layoff totals from both 2024 and 2025.
Source: TechCrunch