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GitLab announces layoffs to go all-in on AI agents
12 May 2026

GitLab, a leading software development platform, has announced plans to lay off employees as part of a major restructuring effort.

The company's CEO Bill Staples said the move is aimed at reallocating resources toward the growing market for artificial intelligence (AI) agents.

GitLab's shares fell more than 8% in after-hours trading following the announcement.

Repositioning GitLab for emerging opportunities
Strategic pivot

In his memo to employees, Staples emphasized that the restructuring is not just about cost-cutting but repositioning GitLab for emerging AI-driven opportunities.

He said most of the savings from this move would be reinvested into the business to accelerate its growth in the "agentic" era, which refers to using AI agents for automating and executing business tasks.

Flattening organizational structure
Operational changes

As part of the restructuring, GitLab plans to flatten its organizational structure by removing up to three layers of management.

The company also intends to reorganize its research and development teams into some 60 smaller, empowered units with end-to-end ownership.

These changes are aimed at streamlining operations and improving efficiency within the company.

Integrating AI into workflows
Tech integration

Along with the organizational changes, GitLab also plans to integrate AI agents into its internal workflows. This would automate processes like reviews, approvals, and operational handoffs to improve speed and efficiency.

Staples said while some roles may be enhanced by AI, others will be expanded to maintain momentum in the company's growth trajectory.

The future of software engineering
Future vision

Staples also stressed on the fact that GitLab is evolving its strategy for the future of software engineering, where "Software will be built by machines, directed by people."

He emphasized that as the cost of producing software collapses, demand for it will expand.

Last year, developer platform markets were measured in tens of dollars per user per month; this year it's hundreds/user/month and headed to thousands.

Assurances for customers and investors
Reassurance

Despite the major changes, Staples assured customers that their support, contracts, and roadmaps will remain unchanged. He promised faster innovation for them.

For investors, he described the restructuring as a deliberate move to position GitLab as the "trusted enterprise platform for software creation in the AI era."

The final scope and financial impact of the restructuring will be shared on GitLab's June 2 earnings call.