GitLab announces layoffs amid major AI overhaul

GitLab has launched a sweeping organizational overhaul that includes workforce reductions, management restructuring and expanded use of artificial intelligence as the company adapts to what executives describe as the next phase of software development. CEO Bill Staples said GitLab is preparing for an “agentic era,” where AI systems will increasingly handle coding, approvals and workflow management while humans focus on strategy and oversight. The company plans to remove multiple layers of management, reorganize research and development teams into smaller units and automate internal operations using AI agents. The restructuring, expected to be finalized by June 1, triggered investor concern, with GitLab shares falling sharply in after-hours trading following the announcement. While the company insists the changes are not purely cost-cutting measures, the move reflects a growing trend across the tech industry as firms rapidly reshape operations around AI, efficiency and faster decision-making amid an increasingly competitive software market.