Software maker GitLab Inc. has become the latest tech company to announce that it will be laying off 7% of its workforce.
Like other tech firms that recently laid off, the company said the decision became necessary as the economy gets tougher, forcing companies to cut their investments in software.
The company recently reported a headcount of 1,630 staff, meaning that the layoffs will impact around 114 people.
GitLab CEO Sid Sijbrandij in a note to GitLab team members published on its website said the decision was very difficult and would surprise many of its staff.
Tough economy: Providing the context to the layoffs, Sijbrandij said:
- “The current macroeconomic environment is tough, and as a result, companies are still spending but taking a more conservative approach to software investments and more time to make purchasing decisions.
- “I had hoped reprioritizing our spending would be enough to withstand the growing global economic downturn. Unfortunately, we need to take further steps and match our pace of spending with our commitment to responsible growth.
- We are sad to say goodbye to talented team members who have played an integral part in GitLab’s journey to date, and I am thankful for their significant contributions. I am sorry to see them leave the company because of this decision.”
Severance package: GitLab’s CEO said the company was committed to helping the affected employees through this challenging time in many ways including continued payment to affected team members through the transition period, which may vary by region. According to him, other support packages to be provided by GitLAB include:
- “A single payout equal to four months’ base salary, and payments will be made according to local processes and timing requirements.
- “We’re accelerating vesting through 2023-03-15 and removing the vesting cliff for team members who have been granted equity and have been with us for under six months.
- “Based on location and current benefit options previously selected by team members, healthcare premiums will be covered for up to six months, where possible. Modern Health for mental health support will continue for all team members for six months.
- “Team members can keep their hardware and home office equipment subject to our security protocols. We will provide outplacement services with a third-party vendor, including coaching, resume building and guidance, and job-seeking support.”
While the layoffs in tech hit the limelight towards the end of last year, 2023 seems to be getting tougher for tech companies going by the number of layoffs that have been announced less than 2 months into the year.
From Amazon to Google, IBM, Paypal, Zoom, and many others, the list has kept on growing.