GitLab Stock Crashes After AI Job Cuts Trigger Major Analyst Downgrade

Tech and DevOps stocks have been jittery as AI hype meets cost cutting. Most recently, all-remote DevSecOps platform GitLab (GTLB) drew attention with a big restructuring. On May 11, CEO Bill Staples announced an “agentic AI” overhaul, flattening management, splitting R&D into roughly 60 teams, and automating workflows with AI agents. Staples set a voluntary separation window to “right-size” roles by June 1.

GitLab said that it is cutting jobs and reshaping the business around the agentic AI era. Raymond James answered the move by downgrading GTLB stock to “Market Perform” from “Outperform," digesting the "letter to employees […] outlining an intent for major internal changes in an effort to move GitLab to its second act as a public company.”