Software development firm GitLab (GTLB) said it expects 14% of its global workforce to get impacted as part of a restructuring plan.
The company expects to exit 22 countries to reduce its team member geographic footprint by about 37%, it said in a filing on Tuesday, adding that it would incur nearly $30 million to $35 million in pre-tax restructuring charges.
“The plan is intended to help position the company for long-term success by realigning its operating structure to optimize execution against its strategic priorities,” the company said.
GitLab expects the restructuring to be substantially complete by the end of fiscal 2027.
Last month, GitLab said it is restructuring its operations as it shifts toward a leaner organization. The company also stated that it is automating more internal processes using AI agents.
Shares of the company, which also posted first-quarter results beat, surged over 7% in extended trading on Tuesday.