people · May 16, 2026
GitLab Shares Fall 7-8% After CEO Bill Staples Details Act 2 Layoffs and AI Pivot
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GitLab CEO Bill Staples announced in a May 12, 2026 memo that the company will cut an unspecified number of its 2,580 employees as part of Act 2 restructuring. Shares fell 7% after hours on the news, with reports citing over 8% declines in after-market trading. The plan includes rewiring processes with AI agents for reviews and approvals plus new consumption pricing for agent work alongside subscriptions. Bill Staples reaffirmed financial guidance and stated savings will accelerate the agentic era opportunity rather than fund buybacks or executive bonuses.
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