Software company GitLab Inc. is planning to cut about 7% of its staff in the latest round of layoffs affecting the tech industry.
“I had hoped reprioritizing our spending would be enough to withstand the growing global economic downturn,” Chief Executive Sid Sijbrandij said in a note to employees that were also posted on the company’s corporate site Thursday morning.
“Unfortunately, we need to take further steps and match our pace of spending with our commitment to responsible growth.”
GitLab makes technology that allows developers to work together on projects, and the layoff is to make “a more conservative approach to software investments” and increase their purchasing decisions.
According to its most recent filing, the company had around 1,630 workers as of January 31, 2022. The company has “been a 100% remote workforce since inception,” according to the filing.
In Thursday morning trading, GitLab shares were down 13%, however, it wasn’t clear if the decline is connected to the news of the layoff.
There has been a wave of layoff announcements in the tech industry recently, with companies such as Zoom Video Communications Inc., eBay Inc., and Dell Technologies Inc. among those that have been affected.