Cloudflare cuts about 20% of staff to accelerate an AI-first operating model

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.

  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

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.

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. The post Cloudflare Lays Off 1,100 Employees in Preparation for Agentic AI Era appeared first on Breitbart.

The company said performance and earnings aren’t to blame for the cuts.

Cloudflare 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.

Cybersecurity giant Cloudflare is laying off over 1,100 employees globally, citing a major reorganization for the 'agentic AI era'. The company's internal AI usage has surged dramatically, prompting a rethink of its structure to enhance customer value and speed. Departing staff receive industry-leading severance packages, including pay through 2026 and extended healthcare.

The internet infrastructure and cybersecurity company plans to cut more than ‌1,100 jobs globally

Internet infrastructure and cybersecurity company Cloudflare plans to cut more than 1,100 jobs globally

Cloudflare said it is cutting about 20% of its workforce, adding that the move reflects a redesign of teams and workflows around AI adoption. CEO Matthew Prince and co-founder Michelle Zatlyn said the company’s use of AI tools has increased more than sixfold over the past three months.

Cloudflare said on Thursday it would cut about 20% of its workforce as the company restructures operations around the rapid adoption of artificial intelligence tools, and forecast second-quarter revenue slightly below Wall Street expectations. The internet infrastructure and cybersecurity company plans to cut more than 1,100 jobs globally. It had 5,156 full-time employees at the end of 2025, and expects ‌charges between $140 ⁠million and $150 ⁠million associated with the job cuts in the second quarter. Cloudflare expects second-quarter revenue of $664 million to $665 million, just under analysts' estimate of $665.3 million, according to LSEG-compiled data. Adjusted earnings are projected at 27 cents per share, in line with expectations. Shares of the San Francisco-based company dropped roughly 19% in extended trading despite stronger-than-expected first-quarter results. 'AGENTIC AI-FIRST OPERATING MODEL' 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. In the first quarter, Cloudflare reported revenue of $639.8 million, beating analysts' estimate of $621.9 million. Adjusted profit came in at 25 cents per share, above expectations ‌of 23 cents per share. Shares of Cloudflare have risen 30.3% so far this year. Impact of AI-driven automation The announcement comes as concerns grow among investors and economists that AI-driven ⁠automation could disrupt industries and accelerate job losses in sectors most vulnerable to automation. In a similar move, payments firm Block said in February that it would cut more than 4,000 jobs, nearly half its workforce, as part of an overhaul to embed AI across its operations. Earlier this year, Goldman Sachs economists said AI was responsible for 5,000 to 10,000 monthly net job losses in 2025 in the most exposed U.S. industries.

The internet infrastructure and cybersecurity company plans to cut more than 1,100 jobs globally

The company's stock plunged roughly 18% after it announced the job cuts and forecasted revenue that fell short of expectations.

The company’s stock falls as co-founders say the layoffs are “not a cost-cutting exercise.”

The cloud provider announced it is laying off 20% of its workforce as agentic artificial intelligence "fundamentally changes" the company's work.

Cloudflare Inc. plans to cut more than 1,100 jobs globally as it accelerates its shift to an agentic AI-first operating model.