Cloudflare announces layoffs of over 1,100 employees

Cloudflare is laying off over 1,100 employees globally as part of a reorganization to adapt to a rapid increase in AI usage, which has "fundamentally changed" its workflow, the co-founders said in a letter. The job cuts are neither a "cost-cutting exercise" nor performance-related, according to the statement, and affected employees will receive their full base pay through the end of the year. The tech company also reported earnings and revenue that beat analyst estimates Thursday.

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Cloudflare announces layoffs of over 1,100 employees

In a letter to employees, the company’s co-founders said the shift in AI adoption has fundamentally reshaped how work is done internally, prompting a realignment of teams and priorities.

Not a Cost-Cutting Move

The company emphasized that the layoffs are not driven by cost reduction or employee performance. Affected workers will continue to receive their full base salary through the end of the year as part of the transition.

Strong Financial Performance Continues

Despite the restructuring, Cloudflare reported quarterly earnings and revenue that exceeded analyst expectations, signaling continued business momentum even as it adjusts to a more AI-driven operating model.

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