Kritika 
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The tech world has received another wake-up call. There have been layoffs at GitLab, and they are larger than they have announced in the past. DevSecOps provider DevOps Refinery will make about 350 job cuts and exit 22 countries as part of its strategy to shift to AI.
Here’s what you need to know, including the “why” of the cuts as well as what employees impacted will face.
What’s Happening? GitLab Layoffs 2026 at a Glance
The restructuring was announced in conjunction with its first quarter of fiscal 2027 earnings, which also included a positive change of control. The size of the operation came as a surprise to many:
| Metric | Details |
| Jobs Cut | ~350 full-time positions |
| Workforce Reduction | ~14% of total workforce |
| Countries Exiting | 22 countries |
| Geographic Footprint Reduction | ~37% |
| Restructuring Charges | $30M–$35M (pre-tax) |
| Expected Q2 Charges | ~$19M |
It’s one of the broader instances of artificial intelligence layoffs in software this year — and a clear signal of the future of software.
Why Is GitLab Cutting Jobs? Blame (or Credit) AI
The answer in a nutshell: AI is stepping in more, which means that fewer people are required for certain jobs.
In the future, AI systems will be able to do more of the coding, reviewing, approvals, and operational handoffs- a vision that CEO Bill Staples called the “agentic era“; this is the reason for the 2026 restructuring at GitLab.
To achieve that future, GitLab is:
- Incorporating AI agents within workflows.
- Including a separate R&D team within the business
- Eliminating layers of management to move quickly.
- Restructuring savings made back into AI development (re-investment)
This is more than just a cost-cutting move; the CEO has said. The bulk of the savings from the band of GitLab employees is going to the company’s primary AI offering, the Duo Agent Platform.
Yes, tech careers are definitely getting affected by AI, but the company says it’s working on more.
Which 22 Countries Is GitLab Exiting?
That’s the one that everyone is asking — and, as of yet, GitLab hasn’t announced the comprehensive list of impacted countries.
What we do know:
- The deal will reduce GitLab’s global footprint by some 37%
- Customers in these areas will not be affected, as GitLab will remain available to them via partner networks, rather than direct operations.
- The changes will affect more than any other group of employees, including the GitLab remote workers in these regions.
The list of affected countries will be updated as more information becomes available. Tune in to the official announcements and filings by GitLab’s investors for the most recent news on GitLab hiring.
Severance Package: What Do Affected Employees Get?
GitLab has said it will recognise a restructuring charge between $30 million and $35 million, much of which will be from severance and organisational costs.
The charges are an indication of significant severance packages, which are typical in layoffs in other major software companies in 2026.
If you are a member of the GitLab staff who will be impacted by the cuts, here’s what you need to do now:
- Please note that any communication from HR will be sent to your official GitLab email.
- It is important that you read through your employment contract and check on the severance provisions applicable in your jurisdiction.
- If you live in one of the 22 countries that are transitioning out of the program, look for a local employment lawyer who can guide you through your severance options, and how they differ across countries.
- Keep all documentation on file (offer letters, contracts and any HR related correspondence)
But Wait — Isn’t GitLab Actually Doing Well Financially?
Yes — and that’s what makes the GitLab layoffs story around the world so interesting.
But a spate of layoffs aside, GitLab’s Q1 FY2027 results were really solid:
- Revenue: $264.2M – up 23% year-on-year
- Expected: $254.3M – GitLab ended up $10M above that.
- EPS: 23 cents vs. 21 cents expected
- Stock: After the announcement, the stock price of GitLab rose by 7.5% in after-hours trading.
- Market cap: Crossed $5 billion
The company has also upgraded its full-year guidance, with its forecast of adjusted EPS in the range of 79–82 cents and FY2027 revenue forecast starting at $1.112 billion.
The thing you will have to accept about AI job cuts in 2026 is that companies don’t necessarily need to be on the verge of making any cuts. That’s all they need: another model to drive efficiency.
What does this mean for the rest of the tech world?
The GitLab Layoffs 2026 won’t stop the trend. Big and small companies are dumping old costs to invest in AI. So they’re laying off workers. But this shift shows no signs of slowing down. So, these tech layoffs appear less about money-related concerns and more about progress toward AI.
For this new era, winning is about having smaller and leaner teams with the ability to collaborate and operate with smarter and autonomous AI. This configuration is becoming the norm.
The changes GitLab is undergoing are likely to be finalised by the end of FY2027. There is a keen interest among investors to see if this AI-driven investment approach will prove successful.
Quick Summary
The GitLab Layoffs 2026 impact approximately 350 people (or 14% of the workforce) from the company:
- Eliminating 37% of the footprint with the exit of 22 countries from GitLab.
- The pivot is fueled by AI – the Duo Agent Platform that is.
- Severance: $28M–$32M, with the majority of this amount being severance costs
- But despite the cuts, GitLab has managed to post better earnings and increase its guidance.
- Specific countries and full GitLab severance benefits information yet to be received
The take-home lesson from the top: either acclimate yourself to the agentic era or get left behind. That doesn’t bring much solace to the 350 workers in the middle, but knowing what you have the right to do and what you can do is a good first step.
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