New Delhi, May 12 -- GitLab Inc., which makes software that helps developers on coding projects, said it is cutting jobs to free up money to spend on the market opportunity for artificial intelligence agents.

Shares fell more than 8% in after-market trading. The cuts are "not an AI optimization or cost cutting exercise," Chief Executive Officer Bill Staples said in a memo to employees on Monday.

"We intend to reinvest the vast majority of savings back into the business to accelerate our unique opportunity in the agentic era," he added, referring to the market for using AI agents to complete business tasks.

GitLab will cut layers of management and reorganize its research and development teams, while reducing the number of countries it o...