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Cloudflare to lay off over 1,100 employees in AI shift

Entrackr · 1h ago

Medial

Cloudflare to lay off over 1,100 employees in AI shift US-based cloud infrastructure firm Cloudflare is set to lay off around 20% of its global workforce as the company restructures operations around artificial intelligence (AI), according to multiple media reports. The layoffs are expected to impact more than 1,100 employees across different teams. The company said it is moving towards an “AI-first” operating structure where several internal tasks and workflows will increasingly be handled by AI agents and automation tools. The move comes despite Cloudflare posting strong financial performance in the first quarter of 2026. The company recently reported revenue of nearly $640 million for the quarter, beating market expectations. However, management believes rapid AI adoption is significantly changing the way businesses operate internally. Cloudflare CEO Matthew Prince reportedly said that the usage of AI tools inside the company has surged sharply over the last few months, reducing the need for certain operational and support roles. The company is expected to incur restructuring charges of nearly $150 million due to the layoffs. At the same time, Cloudflare may continue selective hiring in engineering and AI-focused functions. The development also shows a trend in the global technology industry where companies are increasingly linking job cuts to AI adoption. Over the past few months, several technology firms have either slowed hiring or reduced workforce while shifting focus towards automation and AI-driven productivity. Cloudflare operates a global cloud network and provides cybersecurity, content delivery, and internet infrastructure services to businesses worldwide.