Image: © monticellllo/Stock.adobe.com
Both companies aim to protect themselves for future growth, while Microsoft has reportedly cut 120 jobs from its Irish operations.
Coding platform GitLab and its Microsoft-owned rival GitHub are reducing the sizes of their workforces by 7pc and 10pc respectively.
In a message to staff, GitLab CEO Sid Sijbrandij said the measure is being taken to “match our pace of spending” with responsible growth.
Sijbrnadij said previous measures were taken to reduce spending and “withstand the growing global economic downturn”, but further measures are required.
“The current macroeconomic environment is tough, and as a result, companies are still spending but they are taking a more conservative approach to software investments and are taking more time to make purchasing decisions,” Sijbrandij said.
The decision means GitLab will lose around 130 workers, as the company employs roughly 1,860 workers according to PitchBook data.
The CEO said affected staff have received a meeting invitation from their managers where additional information will be provided. Leaving staff will also receive payment during the transition period, a severance package and other benefits.
“We know this can be an unsettling experience for team members who are staying. It can be hard to see valued team members leave, and we will host a series of Ask Me Anythings to answer your questions,” Sijbrandij said.
GitHub
Meanwhile, code hosting service GitHub is also planning to cut its workforce by around 300 this year, based on its total workforce size according to Pitchbook.
In an email to staff shared by TechCrunch, GitHub CEO Thomas Dohmke said the decision is being made to protect the “short-term health” of the company while granting capacity to “invest in our long-term strategy”.
“Although our entire leadership team has carefully deliberated this step and come to agreement, ultimately, as CEO the decision is mine,” Dohmke said. “I recognise this will be difficult on you all, and we will approach this period with the utmost respect for every Hubber.”
Microsoft acquired the code hosting service in 2018 in a $7.5bn deal.
Last month, Microsoft confirmed plans to lay off 10,000 employees globally by the end of the third quarter this year.
The tech giant has already begun laying off staff in certain divisions such as its Surface devices, HoloLens mixed reality hardware and Xbox, people familiar with the matter told Bloomberg.
Irish-based staff were informed that 120 jobs will be cut here, RTÉ reports. Microsoft employs more than 3,500 people in Ireland in a variety of roles.
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