GitLab Inc (NASDAQ: GTLB) announced a restructuring plan approved by its board of directors on June 1, 2026, that will affect approximately 14% of its global workforce as of January 31, 2026.

The software development platform company said the plan aims to realign its operating structure to optimize execution against strategic priorities. GitLab also expects to exit 22 countries, reducing its geographic footprint by approximately 37%.

The company anticipates incurring $30 million to $35 million in pre-tax restructuring charges related to the plan. These costs will consist primarily of one-time severance, employee termination benefit costs, and retention costs associated with executing the restructuring.

GitLab expects approximately $19 million of the restructuring charges to be incurred in the second quarter of fiscal year 2027, with the majority of remaining costs recognized over the following three quarters. The company anticipates the plan will be substantially complete by the end of fiscal 2027.

The company noted that additional costs associated with the plan may be identified and disclosed when reasonably estimable. The expected charges are subject to various assumptions, including legal requirements in different jurisdictions where GitLab operates.