GitLab has laid off approximately 350 employees (14% of its workforce) as part of a restructuring that includes exiting 22 countries, flattening management layers, and rebuilding infrastructure to handle AI-driven workloads. CEO Bill Staples cited agentic workloads stressing developer infrastructure beyond its original design capacity, noting a 'generational rebuild of git' is underway to support 100x growth. GitLab has partnered with an unnamed AI lab to redesign its infrastructure and APIs for agent-optimized workflows. Despite the cuts, the company reported Q1 FY2027 revenue of $264 million, up 23% year-over-year with 88% gross margins. The layoffs follow a broader industry trend of tech companies — including Amazon, Microsoft, Cloudflare, and Meta — cutting staff while citing AI transformation, with the tech sector having already shed over 100,000 jobs in 2026.
