As Shares Down: 7% Of Workforce Will Be Cut Down By GitLab

GitLab CEO Sid Sijbrandij said in a communication to workers Thursday that the company is reducing headcount by 7%, or about 130 positions.

Shares of GitLab fell about 12% on the news.

The current macroeconomic terrain is tough, and as a result, companies are still spending but they’re taking a more conservative approach to software investments and are taking further time to make purchasing opinions, ”Sijbrandij said in his communication to workers.

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GitLab had 1,860 workers according to PitchBook data. It competes with Microsoft’s GitHub, and offers enterprise-level services for cooperative software development, counting Goldman Sachs, UBS, Nvidia, and Siemens among its customers.

I had hoped reprioritizing our spending would be enough to defy the growing global profitable downturn. Unfortunately, we need to take further path and match our pace of spending with our commitment to responsible growth, ”the CEO told workers.

GitLab is offering severance that includes a single payout equal to four months of base salary, accelerated equity vesting, and will pay healthcare premiums for up to six months “where possible.

GitLab joins the category of tech companies, large and small, that have laid off staff in recent months, including Alphabet, Meta, Amazon, and Microsoft. Many have cited a compacting macroeconomic environment.

GitLab didn’t presently respond to a request for comment.

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