Cloudflare says it will cut about 20% of its workforce, affecting more than 1,100 jobs globally, as it restructures operations around rapidly increasing use of AI tools. The company describes the changes as a redesign of teams, roles and internal workflows for an “agentic AI-first operating model,” rather than a short-term cost-cutting effort or a response to employee performance. CEO Matthew Prince and co-founder Michelle Zatlyn say Cloudflare’s use of AI has risen more than sixfold over the past three months, prompting the company to reimagine how functions operate. Multiple reports also link the announcement to an earnings-related reaction from investors: Cloudflare shares fall sharply (about 18% to 19% in after-hours or extended trading) after the layoffs and revenue outlook. The company forecasts second-quarter revenue of roughly $664 million to $665 million, slightly below some analyst expectations, and expects restructuring-related charges of about $140 million to $150 million in the second quarter. Earlier results reported by the company show first-quarter revenue and adjusted earnings ahead of estimates, despite the more cautious outlook.
Cloudflare cuts about 20% of staff to accelerate an AI-first operating model
Cloudflare says it will cut about 20% of its workforce, affecting more than 1,100 jobs globally, as it restructures operations around rapidly increasing use of AI tools. The company describes the chan...
- Cloudflare plans to cut about 20% of its workforce, totaling more than 1,100 jobs globally.
- The company attributes the layoffs to restructuring operations around an “AI-first” and “agentic AI” operating model.
- Cloudflare says its AI use has increased more than sixfold over the past three months.
- Investors react negatively to the announcement, with the stock dropping roughly 18–19% after earnings and guidance.
- Cloudflare forecasts second-quarter revenue of about $664–$665 million and restructuring charges of about $140–$150 million.
The company topped revenue and earnings forecasts for the first quarter of 2026, but its shares plunged more than 20%. The post Cloudflare Lays Off 1,100 Employees in AI-Driven Restructuring appeared first on SecurityWeek.
1 month agoCloudflare 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
1 month agoCloudFlare announced its first large-scale layoff. CEO Matthew Prince says because of AI efficiency gains, the company doesn't need as many support roles.
1 month agoCybersecurity 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. The post Cloudflare Lays Off 1,100 Employees in Preparation for Agentic AI Era appeared first on Breitbart.
1 month agoThe company said performance and earnings aren’t to blame for the cuts.
1 month agoCloudflare plans to cut about 20% of its workforce, or more than 1,100 employees, as it restructures around an "agentic AI-first operating model." Reuters reports: Cloudflare CEO Matthew Prince and co-founder Michelle Zatlyn said in a message to employees that the company was reimagining every team and function to operate in what they described as an agentic AI era. Cloudflare said the job cuts reflect a redesign of internal processes and roles, rather than a response to employee performance or short-term cost pressures. The company added that its own use of AI has increased more than sixfold over the past three months, prompting major changes in how teams operate. Read more of this story at Slashdot.
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