GitHub is laying off 10 percent of its workforce

Shortly after competitor GitLab, GitHub also announces layoffs. The Microsoft subsidiary will lay off 10 percent of its workforce over the remainder of the financial year. It will also eventually leave its two offices and work completely remotely.

According to Microsoft expert Paul Thurrott it concerns 300 employees. GitHub continues to tell Fortune that the layoffs are necessary to “protect the health of the business and to allow us to invest in our long-term strategy.” GitHub had already put a freeze on hiring new staff and that remains in effect.

GitHub CEO Thomas Dohmke also says in a letter to employees that the GitHub offices are “very little used”, making switching to fully remote working a logical choice. Leaving offices will also be phased in, as leases expire or the company is ‘operationally able’ to leave a location.

Finally, GitHub says it is also looking for ways to further reduce costs. Employees will now receive a new laptop every four years instead of every three years and the company will switch to Microsoft Teams for video meetings, which should result in ‘significant cost savings’.

GitHub’s biggest competitor, GitLab, announced at about the same time that it is laying off seven percent of its workforce. That amounts to approximately 130 employees.

There have also been layoffs higher up: last month, GitHub parent company Microsoft announced it would cut 10,000 jobs. These fell at Microsoft, but also at gaming subsidiaries Bethesda Softworks and 343 Industries. Microsoft CEO Satya Nadella recently said in an interview that the tech sector is facing ‘two difficult years’.