GitLab Inc., a software company that assists developers with coding projects, announced plans to cut jobs to reallocate funds towards opportunities in artificial intelligence. Following this announcement, shares dropped by more than 8% in after-market trading. CEO Bill Staples reassured employees in a memo that the cuts are not a cost-cutting measure but a strategic move to reinvest savings into the business, particularly in the burgeoning market for AI agents. The company aims to streamline operations by reducing management layers and reorganizing its research and development teams. Additionally, GitLab plans to automate internal processes using AI agents to enhance efficiency. While the exact number of job cuts is yet to be determined, Staples stated that the results will be disclosed on June 2 during GitLab's quarterly earnings report. The company has maintained its guidance for the current quarter and fiscal year 2027.