GitLab Cuts 14% of Staff and Exits 22 Countries After 17-18 Cent EPS Outlook
Updated
Updated · CNBC · Jun 3
GitLab Cuts 14% of Staff and Exits 22 Countries After 17-18 Cent EPS Outlook
3 articles · Updated · CNBC · Jun 3
Summary
GitLab said it will cut about 350 employees — roughly 14% of its full-time workforce — and leave 22 countries as part of a restructuring plan.
The move followed weaker profit guidance: GitLab forecast adjusted earnings of 17 to 18 cents a share, below the 19 cents analysts expected, sending the stock down nearly 4% premarket.
GitLab expects the restructuring to generate $30 million to $35 million in pretax charges, underscoring the cost of the pullback.
The cuts and country exits point to a broader effort to reset expenses and operations after lowering near-term earnings expectations.