GitLab to cut 7% of workforce, or about 130 employees, sending shares down

GitLab CEO Sid Sijbrandij said in a message to employees Thursday that the company is reducing headcount by 11%, or about 130 positions.

Shares of GitLab fell about 9% on the news.

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“The current macroeconomic environment is tough, and as a result, companies are still spending but they are taking a more conservative approach to software investments and are taking more time to make purchasing decisions,” Sijbrandij said in his message to employees.

GitLab had 1,860 employees according to PitchBook data. It competes with Microsoft‘s GitHub, and offers enterprise-level services for collaborative software development, counting Goldman Sachs, UBS, Nvidia, and Siemens among its clients.

“I had hoped reprioritizing our spending would be enough to withstand the growing global economic downturn. Unfortunately, we need to take further steps and match our pace of spending with our commitment to responsible growth,” the CEO told employees.

GitLab is offering severance that includes a single payout equal to four months of base salary, accelerated equity vesting, and will pay healthcare premiums for up to six months “where possible.”

GitLab joins the ranks of tech companies, large and small, that have laid off staff in recent months, including Alphabet, Meta, Amazon, and Microsoft. Many have cited a contracting macroeconomic environment.

GitLab did not immediately respond to a request for comment.