GitLab cuts 14% staff, restructures to focus on AI workloads

Developer platform GitLab has laid off about 14% of its staff, or around 350 people, as part of a restructuring plan announced last month. The company is also pulling out of 22 countries and trimming management layers to focus on AI-related infrastructure. CEO Bill Staples said AI agents running at machine scale are putting pressure on existing developer tools. GitLab is rebuilding its Git system to handle 100x growth and working with an unnamed AI lab to design optimized APIs and storage for agents. The company reported $264 million in quarterly revenue, up 23% year-over-year, with a gross margin of 88%. Restructuring costs are estimated between $30 million and $35 million.