‘This wasn’t an easy decision,” Cloudflare CEO said as it cuts over 1,100 jobs globally

Cloudflare, the prominent internet infrastructure and cybersecurity firm based in the United States, has announced a significant workforce reduction, cutting about 20% of its employees, which translates to over 1,100 jobs globally. This decision, detailed in a recent blog post, underscores the transformative impact of artificial intelligence (AI) on the company's operational dynamics. During an earnings call, CEO Matthew Prince stated, "This wasn’t an easy decision, but it’s the right decision." He explained that the evolving role of AI has allowed smaller teams to manage tasks that once necessitated larger groups. As a result, some positions are no longer aligned with the strategic direction Cloudflare is pursuing. Prince revealed that the company's utilization of AI has surged by an astonishing 600% in just three months, reflecting a shift towards what he termed an "agentic AI-first operating model." The layoffs, he emphasized, are a result of organizational restructuring rather than employee performance issues or budgetary constraints. As of the end of 2025, Cloudflare employed 5,156 full-time staff members, meaning that the upcoming cuts will impact roughly one-fifth of its workforce. The company anticipates incurring between $140 million and $150 million in severance costs during the second quarter. Despite these layoffs, Cloudflare reported stronger-than-expected financial results in the first quarter, with revenues amounting to $639.8 million, surpassing forecasts of $621.9 million. Its adjusted earnings also exceeded expectations, coming in at 25 cents per share. This shift towards reducing staff occurs within a broader trend, as tech companies like Cognizant and Meta are also initiating significant layoffs, with Cognizant cutting over 15,000 jobs and Meta possibly impacting nearly 8,000 positions in the U.S.