Cloudflare cuts nearly 20% of staff as AI transforms company workflows
Cloudflare said it will cut more than 1,000 jobs as part of an operational restructuring amid the rapid adoption of artificial intelligence tools.
Cloudflare said it will cut more than 1,000 jobs as part of an operational restructuring amid the rapid adoption of artificial intelligence tools.
The internet infrastructure and cybersecurity company plans to cut more than 1,100 jobs worldwide, down from 5,156 full-time employees by the end of 2025, Reuters reported .
The company expects costs related to staff reductions in the second quarter to be between $140 million and $150 million.
Cloudflare CEO Matthew Prince and co-founder Michelle Zatlin said in a statement to employees that the company is rethinking the work of every team and function to operate in an era they called the “age of agent-based AI.”
Cloudflare said the job cuts reflect a review of internal processes and roles, and are not a response to employee productivity or short-term financial pressures.
The company added that its own use of AI has increased more than sixfold in the last three months, which has led to major changes in how teams work.
Cloudflare expects second-quarter revenue to be between $664 million and $665 million, slightly below analysts’ estimates of $665.3 million, according to data compiled by LSEG. Adjusted earnings are forecast at 27 cents per share, in line with expectations.
The company's shares fell about 19% during the extended trading session, despite better-than-expected first-quarter results.
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