By Dean Seal

GitLab is cutting 350 full-time employees, about 14% of its total workforce, as part of a restructuring it floated last month.

The maker of software-development tools said weeks ago that layoffs were coming as it looked to remove layers of management from certain parts of its business and rework its research-and-development teams.

The company detailed those cuts on Tuesday, saying they would cost it between $30 million and $35 million in severance, termination benefits and retention costs. Roughly $19 million of that is expected to be incurred during the current quarter that ends in late July.

As part of the overhaul, GitLab is exiting 22 countries to reduce its geographic footprint by about 37%. It said last month that customers in those markets would continue to be served through the company's partner network.

The restructuring is on track to be completed by early next year. Shares rose 7% to $34.05 after hours.

GitLab joins a growing roster of software companies that have laid off employees and said they were pivoting to make artificial intelligence a central pillar of their business.

"We are evolving GitLab to be the trusted enterprise platform for software creation in the AI era," Chief Executive Bill Staples said.

Also on Tuesday, the company bumped up the low-end of its revenue guidance for the fiscal year that ends in late January, while it still expects a ceiling of $1.12 billion. Adjusted earnings are now on track to hit 79 cents to 82 cents a share, up from a previous target of 76 cents to 80 cents a share.

GitLab's forecast for revenue in the current quarter was in line with analyst views, while its adjusted earnings estimate was slightly lower than what analysts had been projecting, according to FactSet.

For the first quarter that ended April 30, revenue climbed 23% to $264.2 million, beating analyst targets for $254 million. Subscription revenue jumped to $239.3 million from $194.5 million a year earlier.

Existing GitLab customers spent more than they did in the year prior, and the count of customers with more than $100,000 in annual recurring revenue increased 18%.

The company posted a loss of $5 million, or 3 cents a share, compared with a loss of $35.9 million, or 22 cents a share, in the same quarter a year earlier.

Adjusted earnings were 23 cents a share, two cents higher than what analysts had been expecting.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

June 02, 2026 16:59 ET (20:59 GMT)

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