San Francisco– Open core company GitLab has announced to lay off 7 per cent of its workforce amid tough macroeconomic conditions.

According to TechCrunch, the company’s most recent reported headcount was 1,630, implying that the round of redundancies will affect approximately 114 people, though that specific figure is dependent on its current headcount.

In a letter to employees, GitLab CEO Sid Sijbrandij informed them about the job cuts, saying: “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.

“I had hoped reprioritising our spending would be enough to withstand the growing global economic downturn. Unfortunately, we need to take further steps and match our pace of spending with our commitment to responsible growth.”

Moreover, Sijbrandij said that those affected will receive severance pay throughout the “transition period”, plus a payout equivalent to four months’ base salary.

He also mentioned that employees will continue to receive healthcare for the next six months in locations where it is included in their package.

GitLab went public on the Nasdaq (US stock exchange) about 16 months ago, and its shares haven’t performed particularly well in that time. (IANS)