Cloudflare Cuts 1,100 Employees (20% of Workforce) to Pivot to 'Agentic AI-First Operating Model'
CNBC / Hacker News·high signal
Cloudflare announced it will lay off over 1,100 employees — 20% of its workforce — citing a 600% increase in internal AI usage over three months, with 'thousands of AI agent sessions' running daily across engineering, HR, finance, and marketing. The stock sank 18% in extended trading despite beating Q1 earnings estimates. Severance includes full base pay through end of 2026, with total restructuring charges estimated at $140–150 million.