GitLab (GTLB) took a hard hit on Tuesday, with shares falling nearly 15% after the company unveiled a major restructuring plan. The DevOps software maker said it will cut about 14% of its workforce, or roughly 350 roles, as it tries to tighten costs and sharpen its focus on profitability.
The selloff was sharp, but the reaction was not surprising. Software stocks have been pressured for months as enterprise customers slow spending and become more selective with new deals. That has hurt several names across the space, including Atlassian (TEAM) and JFrog (FROG). GitLab, though, has always stood out a bit from the pack thanks to its all-in-one platform and remote-first culture.
