GitLab Announces AI-Led Restructuring, Plans Workforce Cuts & Flatter Organisation

GitLab has announced a major organisational overhaul that includes job cuts, management restructuring and deeper integration of artificial intelligence across its operations, as the company positions itself for what CEO Bill Staples described as the ‘agentic era’ of software engineering.

The DevSecOps platform company said it plans to reduce an unspecified number of roles by June 1 while simplifying its organisational structure by removing up to three layers of management in certain functions. The move is part of a broader effort to redesign the company around AI-first workflows and leaner operational models.

According to reports, the announcement triggered a negative market reaction, with GitLab shares falling in after-hours trading following the disclosure.

In a memo addressed to employees, customers and investors, Staples said the company was restructuring to adapt to a future in which AI systems increasingly participate in software development, deployment and maintenance.

He noted that software development is moving towards a model in which machines handle large portions of execution while humans focus on directing systems, solving complex technical challenges and making architectural decisions.

GitLab said the restructuring would be carried out transparently, including a voluntary separation programme for employees. The company employed around 2,580 people as of January this year.

As part of the reorganisation, GitLab plans to reduce the number of countries where it operates smaller teams, flatten management hierarchies, reorganise research and development into nearly 60 smaller autonomous teams, and embed AI agents into internal workflows for approvals, reviews and operational handoffs.

The company said the new structure is intended to improve speed, accountability and decision-making while reducing operational complexity.

A major component of the overhaul involves reshaping GitLab’s engineering and research functions. The company plans to nearly double the number of smaller independent R&D teams, giving them end-to-end ownership of products and workflows.

Leadership said the shift reflects a broader transformation across the technology industry, where organisations are moving away from large hierarchical structures toward more agile, AI-enabled teams.

GitLab is also expanding the role of AI agents internally. The company plans to automate several operational processes, including code reviews, workflow transitions and approvals, using AI-powered systems integrated directly into development pipelines.

Staples said AI agents would increasingly take on responsibilities across coding, deployment and software maintenance, while demand for highly skilled engineers capable of solving complex technical problems would continue to rise.

Beyond organisational changes, GitLab outlined a long-term strategy focused on building AI-native software infrastructure to support machine-scale development environments. The company said traditional developer platforms were not designed for a future in which autonomous AI systems continuously generate, test and deploy software.

To support that shift, GitLab plans to invest in AI-driven code generation, automated deployments, orchestration systems for AI agents and API-first platform architecture designed for large-scale automation.

The company also highlighted governance, security and compliance as key priorities as enterprises increasingly rely on AI systems across mission-critical workflows.

GitLab reaffirmed its Q1 and FY27 financial guidance and said it would share further details on the financial impact of the restructuring during its June earnings call.