Cloudflare is laying off 1,100 employees to prepare for 'the agentic AI era'

a day ago

Cloudflare announced layoffs of 1,100 employees globally as part of reorganization for the 'agentic AI era'.
The company reported Q1 earnings beating expectations, but shares dropped over 14% in after-hours trading.
AI usage at Cloudflare surged more than 600% in the last three months, prompting a need for restructuring.
Layoffs are not based on performance but on reimagining processes to operate efficiently in the AI era.
Departing employees will receive severance packages with full base pay through 2026, continued healthcare in the U.S., and vested equity through August 15th.
Transparency and empathy are emphasized, with founders directly communicating the changes to all employees.

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