The unfortunate trend of mass layoffs in the tech industry in 2023 shows no signs of slowing down after GitHub was the last company to announce significant layoffs.
The announcement is expected to affect 10% of the company’s approximately 3,000 employees, meaning hundreds could lose their jobs.
In addition to other cost-saving measures, GitHub CEO Thomas Dohmke has also announced plans to close all of its physical offices and operate completely remotely, which will appeal to a significant proportion of employees who prefer the added flexibility since being mandated by WFH nearly three years ago.
In an email to employees, Dohmke explained that the platform is now home to 100 million developers, many of whom are making great use of the AI-powered Copilot, which has proven to be the company’s most successful launch.
In addition to the layoff that remains in place, affected workers can expect to be notified during FY23, with some soon and others later.
The company’s exact farewell gift to its employees has not been publicly announced, however we do know that employees will receive transitional compensation, extended health care and other transitional benefits.
Dohmke also explained that the company has seen “very low utilization rates” in its offices, which is related to its culture of primarily working remotely. All offices will eventually close when appropriate, including consideration of leases.
Other cost-cutting measures include a four-year laptop refresh cycle (compared to three years) and a reduction in the Microsoft Teams subscription only for video conferencing (Slack will continue to be used for other communication purposes).
Outside the four walls of GitHub, with a similar name GitLab (opens in a new tab) also announced a 7% job cut as a result of difficult macroeconomic conditions.
By Fortune (opens in a new tab)