GitHub lays off 10% of the workforce and plans to go fully remote to cut costs.
GitHub, a software development and version control service provider owned by Microsoft, has announced that it will cut 10% of its workforce to safeguard its immediate financial stability. In addition to the layoffs, the remaining employees will transition to remote work to further reduce costs. The move comes just weeks after the company announced a hiring freeze on January 18, which remains in effect.
CEO Thomas Dohmke informed employees of the upcoming changes in an email, stating that the company will align its work with areas where it can best impact its goals and customer needs across all its products. Unfortunately, this will reduce GitHub’s workforce by up to 10% through the end of FY23. The layoffs will affect approximately 300 outgoing employees, constituting nearly 10% of the company’s workforce of 3,000. The affected employees will receive severance packages and career transition assistance services.
GitHub will move to a fully remote work environment to further reduce costs. While the company will not vacate its offices until their leases end, it plans to increase its refreshing laptop cycle and move to Microsoft Teams for all video collaboration. Dohmke explained that the move to Teams is expected to be completed by September and that the company will continue to use Slack for day-to-day partnership.
The move to remote work comes as GitHub reports meager utilization rates in its offices worldwide. According to Dohmke, this decision is a testament to the success of the company’s longstanding remote-first culture. While the move to remote work aims to reduce costs and protect the health of the company’s business in the short term, it is also expected to grant GitHub the capacity to invest in its long-term strategy moving forward.
Large technology companies, including Microsoft, Oracle, Google, Amazon, and Meta, have laid off employees since August last year. Last month, Microsoft announced its plans to lay off 10,000 employees. Layoffs at technology firms have continued in the new year, with these companies laying off more employees than in any other month since the start of the COVID-19 pandemic.
The article is “GitHub lays off 10% of the workforce, plans to go fully remote to cut costs.“