GitLab cuts 14% of staff as it scales its platform to serve AI workloads

The pattern is by now familiar: Companies are reporting record revenues while simultaneously shrinking their workforces, with AI cited as both the reason for the growth and the justification for the cuts.

Indeed, all of these companies have recently reported strong revenue and profit, pointing to strong demand for AI products, services, or the infrastructure to power them, and GitLab is no exception.

On Tuesday, the company reported first-quarter revenue of $264 million, up 23% from a year earlier, and gross margins of 88%. It expects to incur $30 million to $35 million in restructuring expenses as part of the effort.