GitLab, a software company that provides tools for developers to collaborate on coding projects, said it is cutting jobs as part of a broader effort to redirect resources toward the growing market for artificial intelligence agents.
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.
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, said the Bloomberg report.
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 companies. 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 had earlier 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 headcount; over 93,000 roles have been cut across 106 companies as of May 7, 2026.
