The trickle of technology announcing layoffs does not stop. On this occasion it was their turn, on the same day, to GitHub and GitLab. The first has confirmed that is going to lay off 10% of its workerswhile GitLab will end its employment relationship with 7% of your template.
At GitHub, in addition to the layoffs, the company’s offices will be closed, so all its employees will go to work remotely. This is a process that will not be immediate, since its offices will be vacated when their rental contracts end, or when the company is operationally prepared to do so.
This, like layoffs, is intended to protect the financial stability of the company. This has been pointed out by GitHub CEO Thomas Dohmkein the email that you have sent to all employees about the changes that are coming for workers.
Also, GitHub will put the work you do “in line with the areas in which we can best impact the objectives, and the needs of the clients, in all our products«. And it will take other measures to reduce spending, such as extending the life cycle of its portable equipment, which will go from three years to four. In addition, they will start using Microsoft Teams for everything that involves collaboration via videoconference. Of course, for daily tasks related to collaboration, they will continue to use Slack.
By various estimates, the number of company employees who will have to leave is around 300, according to Fortune. They will be laid off before the company’s fiscal year 2023, and all will receive severance pay, as well as support services to guide them in finding another job. The announcement of the layoffs comes about a month after the hiring freeze was announced by GitHub, which is currently owned by Microsoft.
As for the layoffs at GitLab, they will affect around 160 people. Like the rest of the technology companies that announce layoffs, GitLab has blamed the general macroeconomic situation, and specifically the fact that its clients are reducing software spending and taking longer to make their purchasing decisions. This has been pointed out by GitLab CEO, and one of its founders, Sid Sijbrandijin a letter to his employees.
At the beginning of last year, the company confirmed that it had 1,630 employees, so the layoffs will affect approximately 115 people. However, there may be more depending on the staff hired throughout 2022. All will receive financial compensation, in addition to a payment equivalent to about four months of base salary. In addition, they will continue to have health insurance for six months, in the places where having it was part of their benefits package when they were hired.