Cloudflare (internet infrastructure company)CloudflareCloudflareciting / on grounds ofyǐ以artificial intelligenceAIAIto replace / to supersedeqǔdài取代as the reasonwéiyóu为由to lay off / workforce reductioncáiyuán裁员more than / overyú逾a thousand peopleqiān rén千人。
May 19, 2026 at 5:00 AM
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Science & TechnologyCloudflare Cuts Over 1,100 Jobs Citing AI Automation Despite Record Revenue
Cloudflare announced layoffs of over 1,100 employees, about 20 percent of its workforce, citing an AI-driven restructuring despite reporting record quarterly revenue. Internal AI usage at the company surged 600 percent in three months.
Internet infrastructure company Cloudflare announced layoffs affecting over 1,100 people, marking the largest workforce reduction in the company's history.
This round of layoffs accounts for approximately 20 percent of Cloudflare's global workforce, affecting employees across multiple offices worldwide.
Co-founders Matthew Prince and Michelle Zatlyn stated in an internal letter that the company is transforming into an operations model centered on AI.
The company's internal AI usage surged 600 percent over the past three months, with employees using AI agents daily to handle thousands of tasks.
Notably, Cloudflare's first quarter revenue reached $640 million, representing 25 percent year-over-year growth and setting a historical record.
This round of layoffs is not due to financial difficulties, but rather the result of the company's strategic transformation.
Laid-off employees will receive severance packages including full-year salary.
The layoffs are expected to be substantially completed by the end of the third quarter of 2026.
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