Cloudflare to cut about 20% workforce as AI adoption reshapes operations
The company said AI use surged more than 600% in three months and it expects $140 million to $150 million in restructuring charges.
- Cloudflare announced Thursday it is laying off over 1,100 employees, representing about 20% of its workforce, as the cybersecurity company restructures for an "agentic AI-first operating model."
- CEO Matthew Prince and co-founder Michelle Zatlyn stated the layoffs reflect a shift in operations, citing AI usage that surged "more than 600% in the last three months alone."
- First-Quarter revenue grew 34% year-over-year to $639.8 million, beating estimates, yet shares dropped over 14% in extended trading following the announcement and cautious second-quarter guidance.
- Restructuring costs are expected to fall between $140 million and $150 million, with departing employees receiving full base pay through 2026 and equity vesting through August 15th.
- By reorganizing now, executives aim to avoid repeated smaller cuts while positioning Cloudflare to build faster and remain a leader in the agentic AI era.
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Cloudflare cuts 1,100 jobs in agentic AI pivot despite beating Q1 2026 earnings as stock falls 24%
Cloudflare beat Wall Street’s revenue and earnings estimates on Wednesday, announced it would cut 1,100 employees because artificial intelligence agents now do their work, and watched its stock fall 24 per cent on Thursday. The sequence is becoming the template for the technology industry in 2026: record revenue, record layoffs, record doubt about what […] This story continues at The Next Web
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discernmoney.comAI Revolution Claims 1,100 Jobs at Cloudflare as Founders Admit Machines Are Running the Show
In the heart of Silicon Valley, another tech giant has discovered what so many others are learning the hard way: artificial intelligence doesn’t just augment human work—it replaces it. Cloudflare, the San Francisco-based internet security and cloud networking powerhouse, announced Thursday it is cutting more than 1,100 employees—roughly one-fifth of its global workforce—as it pivots...
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New Movies & TV Shows, Trailers & ReviewsCloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high
Cloudflare announced its first large-scale layoff. CEO Matthew Prince says because of AI efficiency gains, the company doesn't need as many support roles.
Cloudflare Lays Off 1,100 Employees in Preparation for Agentic AI Era
Cybersecurity giant Cloudflare announced on Thursday that it will lay off more than 1,100 employees globally as part of a reorganization aimed at positioning the company for what executives describe as the agentic AI era. The tech company's shares have dropped massively Friday in response to the announcement.
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