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The fun thing is that their R&D cost is dwarfed by expenses on Sales&Marketing and General&Administrative. So, if I understand their financial statements for 20
by tsvetkov 4y ago
The fun thing is that their R&D cost is dwarfed by expenses on Sales&Marketing and General&Administrative. So, if I understand their financial statements for 2022FY correctly, a 7% cut on R&D could lower their total expenses by 2% at best https://ir.gitlab.com/news-releases/news-release-details/gitlab-reports-fourth-quarter-and-full-year-fiscal-2022 https://ir.gitlab.com/news-releases/news-release-details/git...
Even cutting their R&D 100% would not make GitLab profitable, if other expenses are kept the same, so economics is clearly not the reason for layoffs.
- jkukul 4y agoHow do we know they're laying-off people that belong to "R&D" category? Maybe they're cutting people from Sales&Marketing or General&Administrative. There's not too much detail in that press release. Thanks for sharing the link to the report!
- tsvetkov 4y agoYeah, I can't be sure. However, the "tech" part of the layoff most likely falls under the R&D expenses, which are relatively small compared to their overall costs. So I don't see, how cutting any number of core development workforce would make a significant difference. At least in the financial sense. Also, I looked at the wrong year. Currently they are in Q4 2023FY, the statements for the last quarter are here https://ir.gitlab.com/news-releases/news-release-details/gitlab-reports-third-quarter-fiscal-year-2023-financial-results https://ir.gitlab.com/news-releases/news-release-details/git...