GitLab Inc. (GTLB), a software firm that helps teams build, test, and ship code, fell in pre-market trading by about 12% (at the moment of writing), after the firm outlined a new work plan tied to the “agentic era.”
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Next month, on June 8, the company is scheduled to report its Q1 2027 results with a forecast of $0.21 per share.
The move comes as GitLab plans to cut jobs, shrink its workforce by up to 30%, and trim up to three management layers in some areas. The firm also plans to split research and development into about 60 smaller teams. In addition, GitLab said it will use AI agents to help with tasks such as reviews, approvals, and handoffs.
CEO Bill Staples said the plan will be carried out “openly,” with a voluntary exit window. The firm did not say how many jobs may be cut.
Why the Market Is Worried
At times, job cuts can lift a stock as they signal lower costs and better margins. However, this case looks more mixed. GitLab works in a field where AI agents may start to do more of the work that its tools help manage today.
As a result, the stock move may show that some investors see the plan less as a pure cost cut and more as a sign that GitLab must move fast as AI changes how code gets built.
Still, GitLab backed its Q1 and full-year fiscal 2027 guide. The firm said it will share more details on the final scope and cost impact of the plan on its June 8 earnings call, once the board signs off.
Is GTLB a Good Stock to Buy?
On the Street, GitLab has a Moderate Buy consensus, based on 13 analysts’ ratings. The average GTLB stock price target is $35.10, which implies a 36.90% upside from the current price.
