GitLab announces workforce reduction and end of their CREDIT values

about.gitlab.com

475 points by AnonGitLabEmpl 11 hours ago


vultour - 42 minutes ago

GitLab could be the perfect case study on AI-powered efficiency improvements. I have never interacted with a piece of software that, for every single problem I found, there was an open issue always at least 4-7 years old that was just being shuffled around by managers adding and removing random labels.

Surely with all of these ridiculous developer productivity gains enabled by AI, they should finally be able to fix all of these ancient issues quickly and clean up the backlog.

Nope, “workforce reduction” thanks to AI again. This charade is getting boring.

simonw - 8 hours ago

https://www.google.com/search?q=gitlab+stock shows their stock price was ~$52 a year ago and is $26 today, so down 50% in 12 months. It's quite possible this is because they weren't making enough noise about their AI strategy.

If investor fears are that AI makes GitLab's business less valuable, including this in their "GitLab Act 2" announcement makes a whole lot of sense:

> The agentic era multiplies demand for software. Software has been the force multiplier behind nearly every business transformation of the last two decades. The constraint was the cost and time of producing and managing it. That constraint is collapsing. As the cost of producing software collapses, demand for it will expand. Last year, the developer platform market used to be measured in tens of dollars per user per month, this year it is hundreds/user/month and headed to thousands. Not only is the value of software for builders increasing, but we believe there will be more software and builders than ever, and we will serve an increasing volume of both.

Wrote a bit more about this on my blog: https://simonwillison.net/2026/May/11/gitlab-act-2/

torben-friis - 10 hours ago

Lots of interesting information here:

>The agentic era affords GitLab the largest opportunity in our history as a company, and we're making the structural and strategic decisions to meet it

>Operationally, we grew into a shape that was right for the last era and isn't right for this one

To meet their largest opportunity ever, they believe they need less resources. I'm not sure I understand how that follows.

>We're rewiring internal processes with AI agents, automating the reviews, approvals, and handoffs to speed us up

Is this also in the list of "we create code twice as fast and the bottleneck is review so YOLO no bottleneck?". I've yet to see a convincing justification for this. If anything, if you're going full throttle all the more reason to watch the steering wheel, no?

That said, 8 layers of management is a lot of management, and every line of the message seems like leadership truly believes they are sinking in bureaucracy. Let's see how unneeded those 3 layers they're cutting were.

usernametaken29 - 10 hours ago

GitLab never ceases to amaze me in terms of just how bad their product roadmap is. Practical things like CI improvements are put off over UI rebranding on unicorn colours. Yet, good tooling is exactly why people used to pay for GitLab. For better or worse maybe this finally can change and we can get more customer oriented roadmaps again

dunder_cat - 8 hours ago

After CVE-2023-7028 (account takeover via password reset, IIRC you just had to add a semi-colon between the correct email and the attacker email and it'd email both) was exploited against my cluster, the boasting about fully-automated changes and reviews scares me. I hope I'm far from the only one that hasn't forgotten issues like this.

I'm aware that the defective code was not written by AI but nonetheless, GitLab is what stands between many small organizations and their most precious resources. I was fortunate that 2FA stopped the damage, but what's going to happen the next time? What if my organization is permanently damaged because we taught the machines to go fast and break things, too [1]?

[1] VPN is an option but we're a non-profit with a number of non-technical users, so admittedly we're caught in a balance between making it harder to do things. As much as WireGuard is awesome, there's still a barrier.

petetnt - 10 hours ago

With it’s current AI setup GitLab still couldn’t make anything that could be called great in UX so I can’t wait to see what they can do by eliminating the remaining human factor. Can’t personally wait seeing tickets like these [0] open for months with bots telling you that everything will be alright.

[0] https://gitlab.com/gitlab-org/gitlab/-/work_items/588806

simonw - 9 hours ago

This is quite an aggressively optimistic vision for the future of the software industry to tuck into a "workforce reduction" announcement:

> The agentic era multiplies demand for software. Software has been the force multiplier behind nearly every business transformation of the last two decades. The constraint was the cost and time of producing and managing it. That constraint is collapsing. As the cost of producing software collapses, demand for it will expand. Last year, the developer platform market used to be measured in tens of dollars per user per month, this year it is hundreds/user/month and headed to thousands. Not only is the value of software for builders increasing, but we believe there will be more software and builders than ever, and we will serve an increasing volume of both.

Also notable that the workforce reduction they describe doesn't appear to target engineers - they're "nearly doubling the number of independent teams" in R&D and "removing up to three layers of management in some functions".

shimman - 10 hours ago

GitLab is a great example of a lifestyle company that should have never become a public corporation.

sschueller - 7 minutes ago

Is this the best move for the customer or the investor?

fidotron - 10 hours ago

The fact they can't capitalize on the current trainwreck of GitHub speaks volumes. If they had the right product people would be throwing money at them.

skrrtww - 10 hours ago

A lot of the conclusions they're drawing in this post about the "agentic era" seem quite misguided and some don't really seem to make sense.

I have no doubt GitLab has too many employees and can benefit from being a more focused company, but it's tiring reading these layoff posts so chock full of buzzwords. I guess they're desperately hoping if they prognosticate about AI enough it will placate the investors.

rirze - 10 hours ago

While hosting internal services for 4 years, Gitlab was the only service that ran hybrid. Wish they could get their act together and focus on actual engineering again.

If anyone at Gitlab management is reading this; getting your microservices to run fully stateless in a Kubernetes cluster should the #1 goal. No disclaimers about potential risk. It's been 5+ years. Get it together. Stop bolting on minor package management features no one is going to end up using anyways.

Steeeve - 10 hours ago

Wow gitlab. Right when everyone was looking to see if you could lead with all the fails at github, you basically said "We're going to throw our source at ChatGPT and see what happens"

hemul3n - 9 hours ago

> Our transparent restructure process creates uncertainty that is real and it's hard, and I'm not going to pretend otherwise. I ask that you reflect on the why, what and how and engage your manager in a real conversation about the work, the questions and concerns you have, and what the next chapter looks like for you. Your manager may not have all the answers, because they too are going through this period of uncertainty. The conversation still matters and your input shapes how we land as a team.

Setting aside the whole "I'm not going to pretend otherwise which reads suspiciously like Claude, I don't understand how this is supposed to make employees feel any better. No one knows what's going on and through talking we'll figure it out? Mmmmmmhmmmmmm.

lbrito - 10 hours ago

Layoff something something AI.

Yeah, sure. A couple of years ago it was Covid overhiring.

You know the one thing that is never ever going to be given as a reason for layoffs? The growing salary-productivity gap.

Animats - 10 hours ago

Their old CREDIT values: Collaboration, Results for Customers, Efficiency, Diversity, Inclusion & Belonging, Iteration, and Transparency.

New values: Speed with Quality, Ownership Mindset, Customer Outcomes.

In other words, work harder, not smarter, and no more DEI.