Developer platform GitLab has laid off approximately 350 employees, representing 14% of its workforce, as part of a strategic restructuring. This move, detailed in May, involves exiting 22 countries, flattening management, and prioritizing investments in infrastructure to accommodate increased traffic from AI workflows. CEO Bill Staples stated that agentic workloads are straining developer infrastructure beyond its original design, a challenge also faced by competitors like GitHub. GitLab is undertaking a significant rebuild of its platform to support 100x growth for AI agents, partnering with an AI lab to optimize infrastructure and APIs for context storage and retrieval. The company is also developing AI orchestration tools and governance features. These layoffs align with a broader tech industry trend where companies, including Intuit, Amazon, and Microsoft, are reducing staff while integrating AI into their core business, despite reporting strong revenues. GitLab reported first-quarter revenue of $264 million, a 23% increase year-over-year, with expected restructuring expenses between $30 million and $35 million.