GitLab is the latest technology company to announce headcount cuts as the developer operations (DevOps) giant revealed today that it will cut headcount by 7%.
2023 has been a tough year for the tech industry so far, with most big tech companies announcing job cuts, including Microsoft, Alphabet, and Salesforce. Like all of these companies, GitLab defers its decision to the economic climate, especially as customers reduce their spending on software.
“The current macroeconomic environment is challenging, and as a result, companies are still spending, but are taking a more conservative approach to software investment and spending more time on purchasing decisions. employees who have also disclosed.
GitLab went public on the Nasdaq about 16 months ago, but its stock price hasn’t been very strong in the intervening months. RemoteFirst’s company is currently valued at about $7 billion, well below its IPO day valuation of $15 billion and his peak of $19 billion a few months later.
The company’s most recently reported headcount was 1,630, revealed in last year’s 10-K report. This means that the round of layoffs will affect about 114 people, although that specific number will depend on today’s actual headcount.
“I had hoped that reprioritizing spending would be sufficient to withstand the growing global recession,” wrote Sijbrandij. “Unfortunately, we need to go one step further and align the pace of spending with our commitment to responsible growth.”
Regarding severance payments, Sijbrandij said all affected staff will receive salaries through a “transition period”, plus a single payment equivalent to about four months’ base salary. He also said staff will continue to receive health care for six months at locations that are part of the package.
