GitLab, Inc. (GTLB) experienced a significant 5.37% decline in after-hours trading on Tuesday.

The sharp drop followed the company's announcement of a major restructuring plan, which includes a reduction of its full-time workforce by approximately 14%, or 350 employees. GitLab also stated it will exit 22 countries, reducing its geographic footprint by about 37%, and expects to incur pre-tax restructuring charges between $30 million and $35 million.

Investor sentiment was further weighed down by the company's second-quarter guidance. GitLab projected adjusted earnings per share in the range of $0.17 to $0.18, which fell short of the consensus analyst estimate of $0.19. This disappointing outlook overshadowed the company's first-quarter results, which exceeded expectations with adjusted EPS of $0.23 and revenue of $264.2 million.