GitLab is planning a major restructuring to prepare for the era of AI agents, including workforce reductions and streamlining of management layers.
GitLab has announced a major organizational restructuring and a new strategy, 'Act 2,' for the age of AI agents. According to the announcement, GitLab plans to reduce the number of countries in which it is based by up to 30%, cut up to three levels of management in some departments, and reorganize its research and development department into approximately 60 smaller teams. GitLab says that it will reinvest most of the funds saved from the layoffs into technology development for the age of AI agents.
GitLab Act 2
An AI agent is not simply an AI that outputs text or code, but rather software that breaks down tasks according to a goal and autonomously carries out multiple tasks. In its announcement, GitLab stated that it envisions a future where development shifts from 'only humans write code' to 'AI agents create, review, deploy, and repair code, while humans handle design and decision-making.'
GitLab believes that traditional development infrastructure cannot cope with an era where AI agents generate massive merge requests, run 24/7 pipelines, and accumulate commits at a rate far exceeding that of human teams. Therefore, GitLab has adopted a policy of redesigning its development infrastructure based on the premise that AI agents will routinely use Git, CI/CD, security, auditing, and policy management.
From a technical standpoint, GitLab emphasizes not the ability to run AI agents independently, but rather a system that controls the entire development lifecycle. By assigning tasks to multiple AI agents, managing their progress, resolving conflicts, and incorporating human judgment where necessary, they aim to create a software development platform that is not merely code-generating, but actually usable in enterprises.
GitLab also mentioned a review of its corporate culture. It has discontinued its previous values framework, 'CREDIT,' which was an acronym for 'Collaboration,' 'Results,' 'Efficiency,' 'Diversity, Inclusion & Belonging,' 'Iteration,' and 'Transparency,' and has adopted three new operational principles: 'Speed with Quality,' 'Ownership,' and 'Customer Results.' The company plans to automate tasks that can be automated with AI agents, allowing humans to focus on important decisions such as customer understanding, design decisions, and quality control.
In the announcement, CEO Bill Staples acknowledged that the restructuring would create anxiety, but stated, 'We just want to do it right this one time.' He explained that the restructured team will be responsible for Act 2, and that he doesn't want employees to be constantly bracing themselves for the next change.
GitLab is also accepting applications for voluntary retirement. Employees who, in light of the direction of Act 2, feel that GitLab is no longer the right place for their next career step can consult with their manager or director by May 18, 2026, and apply for a retirement package if regional requirements permit. However, applications will be reviewed on a case-by-case basis due to individual circumstances and regional legal requirements.
On the other hand, GitLab is also explaining to its employees 'why they want to stay.' After the restructuring, they plan to improve the employee experience, allow employees to work in smaller, more empowered R&D teams, and introduce a new cash bonus program targeting 10% of their salary for eligible employees. They also aim to reduce internal friction and approval processes, creating an environment where employees can tackle the major technological challenges of the AI agent era.
GitLab has explained to its customers that there are no changes to support, roadmap promises, or contract terms. However, regarding pricing, the company is moving towards a combination of traditional subscriptions and pay-as-you-go pricing based on the amount of work performed by its AI agents.
GitLab's Act 2 is not just an announcement of adding AI capabilities to existing services; it's a plan to completely restructure the company, development infrastructure, pricing structure, and corporate culture in preparation for an era where AI agents play a central role in software development. Staples stated that GitLab will prove its value as a development platform for the AI era through customer service, product innovation, and the creation of shareholder value.
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