GTLB - Quick Thoughts - RIF, Restructuring, & Reit. Guide

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GTLB - Quick Thoughts - RIF, Restructuring, & Reit. Guide

Truist Securities

Equity Research Report May 11, 2026

TMT: Infrastructure Software GitLab Inc. (GTLB)

GTLB - Quick Thoughts - RIF, Restructuring, & Reit. Guide Miller Jump

212-401-4427

Miller.Jump@truist.com

After the market close today, GitLab published an 8-K announcing a reduction-in-force (RIF)

and organizational restructuring. Alongside the announcement, GitLab noted that it expects

Junaid Siddiqui 1Q27 results to come in-line with guidance and reaffirmed FY27 guidance. 212-326-6141

Junaid.Siddiqui@truist.com Within the restructuring, GitLab plans to reduce the number of countries it operates in

by 30%, make an effort to flatten the organization by removing up to three layers of

Jonathan Ngo management, and reorganize R&D into (up to ~60) smaller, end-to-end autonomous teams

212-419-4482 to drive speed and accountability. Management notes that the RIF/restructuring is currently

Jonathan.Ngo@truist.com ongoing, but expects the full action to be complete by June 1st.

GitLab noted that the RIF represents a strategic pivot for the organization, indicating that

the majority of cost savings will be reinvested into key growth initiatives. The company is

Current Price (May 11, $25.64 also embedding AI agents across internal workflows, automating processes such as code 2026)

reviews, approvals, and handoffs, as part of a broader effort to improve productivity and

Stock Rating HOLD align operations & headcount with its evolving product roadmap.

Unchanged We see this announcement as part of a broader-trend across the software industry of

Price Target $25.00 companies leveraging AI-driven productivity gains as the impetus for significant workforce

Unchanged reductions.