GitLab Cuts 14% of Its Staff, Exits 22 Countries To "Bet the Company" on AI Agents
GitLab announced on June 2 that it will lay off roughly 350 employees, about 14 percent of its workforce, and withdraw from 22 countries as part of a restructuring the company calls "GitLab Act 2": a pivot toward an "agentic era" in which autonomous AI agents handle much of the coding, reviewing, and deploying that human engineers do today. The company will flatten management layers and reorganize research and development into roughly 60 teams. (Source: TechCrunch)
GitLab expects about $33 million in pre-tax restructuring charges, mostly severance, and said it will reinvest the majority of the savings into AI initiatives rather than margins. The cuts landed despite strong results: first-quarter revenue of $264.2 million, up 23 percent year over year, beating estimates, with the company raising its full-year profit guidance. The layoffs were announced the same week as the earnings beat. (Source: The Next Web)
The cuts arrive against a body of evidence that AI layoffs do not pay off. A Gartner study of more than 300 executives at companies with at least $1 billion in revenue found that workforce-reduction rates were nearly identical between firms reporting higher AI returns and those seeing modest gains or worse. "Many CEOs turn to layoffs to demonstrate quick AI returns; however, this disposition is misplaced," said Gartner analyst Helen Poitevin, who found the highest-performing companies used AI to amplify workers rather than replace them. (Source: Gartner)
GitLab is one of a growing list. As of June, 55 percent of U.S. layoff rounds in 2026 explicitly cited AI, automation, or machine learning, affecting more than 152,000 workers across 135 companies — even as analysts warn of "AI washing," in which firms blame AI for cuts whose real drivers are overhiring or investor pressure. Total AI-linked job cuts in 2026 had already surpassed the combined totals of 2024 and 2025. (Source: Fortune)

