GitLab to Cut 14% Workforce, Sees $30–35M Restructuring After Q1 Beat
GTLB•GitLab reported Q1 revenue of $264.2 million, a 23% increase year-over-year, and adjusted earnings of $0.23 per share, both exceeding analysts’ projections. The company plans to reduce its full-time workforce by 14% (about 350 employees), exit operations in 22 countries, and expects $30-35 million in pre-tax restructuring charges.
1. Strong Q1 Financial Performance
For the quarter ended April 30, 2026, GitLab generated $264.2 million in revenue, up 23% from $214.5 million a year earlier, surpassing the consensus estimate of $254.2 million. Adjusted earnings reached $0.23 per diluted share versus expectations of $0.20, while customers with over $100,000 in ARR increased 18% to 1,519 and total RPO climbed 18% to $1.1 billion.
2. Cost-Cutting Restructuring Plan
GitLab has initiated a restructuring to align operations with strategic priorities, reducing its full-time workforce by approximately 14% (around 350 roles) and exiting 22 countries, trimming its geographic footprint by 37%. The company anticipates $30–35 million in pre-tax charges—about $19 million in Q2 fiscal 2027—with the program substantially completed by the end of fiscal 2027.
