GitHub lays off 10% of workforce, plans to go fully remote to cut costs

GitHub, the software development and version control service provider owned by Microsoft, announced it would be cutting 10% of its workforce and transitioning the remaining employees to remote work in order to safeguard the company’s immediate financial stability.

“We announced a number of difficult but necessary decisions and budgetary realignments to both protect the health of our business in the short term and grant us the capacity to invest in our long-term strategy moving forward,” a GitHub spokesperson said in an email statement.

On Thursday, GitHub CEO Thomas Dohmke sent an email to employees informing them about the upcoming changes including the layoffs.

“To start, we will align our work with the areas where we can best impact these goals and our customers’ needs across all of our products. Unfortunately, this will include changes that will result in a reduction of GitHub’s workforce by up to 10% through the end of FY23,” Dohmke wrote in his email. 

The estimated 300 outgoing employees, which constitutes close to 10% of the company’s 3,000 workforce, will receive severance packages and career transition assistance services, the company said.

The layoffs, which were first reported by Fortune, come short of a month after the company put a hiring freeze on January 18, which continues to be in effect.

Copyright © 2023 IDG Communications, Inc.

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