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GitLab CEO Sid Sijbrandius said in an announcement to employees Thursday that the company is cutting 11% of its workforce, or about 130 positions.

Shares of GitLab fell about 9% following the news.

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“The current macroeconomic environment is tough, and as a result companies are still spending, but they are taking a more conservative approach to software investments and taking more time to make purchasing decisions,” Sijbrandius said in a note to employees.

According to PitchBook, GitLab had 1,860 employees. It competes with MicrosoftGitHub and offers enterprise-grade services for collaborative software development Goldman Sachs, UBS, Nvidiaand Siemens among its customers.

“I had hoped that the change in our spending priorities would be enough to counter the growing global economic downturn. Unfortunately, we need to take further steps and match the pace of spending with our commitment to responsible growth,” the CEO told employees.

GitLab is offering a severance package that includes a one-time payment of four months’ base salary, accelerated transition to equity, and up to six months of health care premiums “where applicable.”

GitLab joins the ranks of tech companies large and small that have laid off staff in recent months, including Alphabet, Meta, Amazonand Microsoft. Many cited the deterioration of the macroeconomic environment.

GitLab did not immediately respond to a request for comment.

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