GitLab is cutting about 14% of its full-time workforce, roughly 350 people, and pulling out of 22 countries, based on their report for the first quarter of the fiscal year 2027, in which it grew revenue 23% and beat Wall Street’s expectations.
The restructuring, the company said, is meant “to realign its operating structure to optimize execution against its strategic priorities.” The country exits will shrink GitLab’s geographic footprint by about 37%, a reflection of how thinly staffed many of those markets were. GitLab, listed on the Nasdaq as GTLB, has run as an all-remote company since its founding, with employees scattered across dozens of countries.
The numbers the cuts arrived with were strong. Revenue for the first quarter of fiscal 2027, which ended 30 April, came in at $264.2m, up from $214.5m a year earlier and ahead of the roughly $254.6m analysts had penciled in.
Non-GAAP operating margin widened to 14% from 12%, and the GAAP net loss narrowed to $5m from $35.9m. The company also raised its full-year profit guidance. Investors took the package well; the stock rose after hours.
GitLab expects to book $30m to $35m in pre-tax restructuring charges, made up mostly of severance, termination benefits, and retention costs. About $19m of that lands in the current quarter, with the remainder spread across the following three. The plan should be substantially complete by the end of fiscal 2027.The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!
