Layoffs · Enterprise Software & IT

Cloudflare cuts 20% workforce in AI restructuring

What they do

Cloudflare provides cloud network, cybersecurity, and internet infrastructure for businesses worldwide

It is laying off about 20% of its global workforce, over 1,100 employees, with restructuring charges of nearly $150 million

The layoffs are part of a shift to an AI-first structure, where AI agents handle internal tasks, while hiring continues in engineering and AI roles

Cloudflare is laying off around 20% of its global workforce, affecting over 1,100 employees.
The company is restructuring around an AI-first operating structure, using AI agents and automation tools for internal tasks.
Restructuring charges are nearly $150 million due to the layoffs.
In Q1 2026, Cloudflare reported revenue of nearly $640 million, beating market expectations.
CEO Matthew Prince said AI tool usage surged sharply, reducing the need for certain operational and support roles.
Selective hiring will continue in engineering and AI-focused functions.
This move follows a broader trend of global tech companies linking job cuts to AI adoption and shifting to automation.

Cloudflare's revenue beat expectations, yet it still cut jobs, showing a strategic pivot to AI-driven efficiency.
The layoffs are part of a trend where tech companies reduce workforce while investing in AI and automation.
The restructuring charges of $150 million indicate a significant one-time cost for the transition.

Cloudflare operates a global cloud network that provides cybersecurity, content delivery, and internet infrastructure.
Its services help businesses worldwide improve website performance, security, and reliability.
The company makes money through subscription-based plans for its cloud and security products.
It serves a wide range of customers, from small businesses to large enterprises.

Cloudflare will continue selective hiring in engineering and AI-focused functions.
The company is shifting to an AI-first operating structure, using AI agents and automation for internal tasks.