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GitHub, owned by Microsoft, is laying off 10% of its 3,000 employees by the end of its fiscal year.
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The company will close all its offices and shift to a remote-first culture.
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GitHub has also announced a hiring freeze and other internal changes to protect its business.
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The company will move to Microsoft Teams for video conferencing.
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GitHub is extending its laptop refresh cycle from three to four years as a cost-saving measure.
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GitHub CEO Thomas Dohmke made the decision to lay off employees and take other measures.
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Dohmke wants the company to become a "developer-first engineering system for the world of tomorrow" with a focus on AI.
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The company's recent focus on AI is reflected in its emphasis on its Copilot.
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Microsoft is also moving toward AI in its overall strategy.
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Dohmke acknowledged that the layoffs and changes will be difficult for employees.
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