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# GitLab cuts 14% of staff as it scales its platform to serve AI workloads

**[TechCrunch](https://daily.dev/sources/tc)** · 3 min read · 1 upvotes · 0 comments

## Summary

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.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://techcrunch.com/2026/06/03/gitlab-cuts-14-of-staff-as-it-scales-its-platform-to-serve-ai-workloads>

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Tags: [#gitlab](https://daily.dev/tags/gitlab), [#agentic-ai](https://daily.dev/tags/agentic-ai)

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