GitLab Cuts 7% of Workforce, Restructures Into 60 Smaller R&D Teams for 'Agentic Era'

Bloomberg·high signal

GitLab announced a 7% workforce reduction and major restructuring on May 11, reorganizing R&D into roughly 60 smaller autonomous teams (nearly doubling independent teams), flattening management by removing up to three layers, and reducing country presence by up to 30%. The company retired its CREDIT values framework in favor of 'Speed with Quality, Ownership Mindset, Customer Outcomes.' Stock dropped 8% after-hours, extending a 12-month slide from $52 to $26 — raising the question of whether this is genuine agentic transformation or cost-cutting dressed in AI language.