Cloudflare Cuts 1,100, Arctic Wolf Axes 250 Amid AI Surge

Cloud Connectivity, Security Operations Providers Reportedly Chop 20%, 7% of Staff Michael Novinson (MichaelNovinson) • May 11, 2026

Two prominent cybersecurity vendors disclosed widespread layoffs last week, axing a significant percentage of their workforce.

See Also: AI Impersonation Is the New Arms Race-Is Your Workforce Ready?

San Francisco cloud connectivity vendor Cloudflare cut more than 1,100 workers from its 5,483-person staff Thursday, the company announced, saying the layoffs will align Cloudflare's operations with artificial intelligence-driven workflows and productivity gains. Security operations firm Arctic Wolf Wednesday laid off 250 workers from its estimated staff of 3,402 to free resources for investment in AI initiatives.

"This isn't a cost-cutting exercise or an assessment of individual's performance. It's about defining how a world-class, high-growth company operates and creates value in the agentic AI era," Cloudflare co-founder and CEO Matthew Prince told investors Thursday. "We believe that acting ...