More job losses in the tech sector as GitLab announces layoffs

More job losses in the tech sector as GitLab announces layoffs

GitLab CEO Sid Sijbrandij today shared a message with all of its employees that confirmed the company would be having a round of layoffs, which reduces the total headcount at the company by 7% (or approximately 130 jobs). GitLab is a key competitor to Microsoft's GitHub, who also announced layoffs today in a move that sees it becoming a remote-only company.

The message goes on to state that it was a difficult decision and may be unexpected for members of the GitLab team, however, further context is provided later on.

"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."

"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."

GitLab have also stated that it will provide support to team members affected by the layoffs in a number of ways, including payment through transition, severance pay, and healthcare support for up to six months where possible. It goes on to say that the senior team, including Sid, will be hosting a series of Ask-Me-Anything's (AMA's) for all staff members, including those who will be retained by the company, to answer any questions they may have.

This move comes amidst a swathe of layoffs across the tech industry, with Yahoo, Google and Microsoft being some of the biggest names to announce job cuts.