Cloudflare Lays Off 1,100 Employees in AI-Driven Restructuring

Web performance and security company Cloudflare announced last week that it’s laying off more than 1,100 employees worldwide as part of an AI-driven restructuring plan.

In an email to workers, CEO Matthew Prince and President Michelle Zatlyn said the company’s AI usage has skyrocketed — by over 600% in the past three months alone — with AI agents being heavily used by employees in HR, marketing, finance, and engineering.

“That means we have to be intentional in how we architect our company for the agentic AI era in order to supercharge the value we deliver to our customers and to honor our mission to help build a better Internet for everyone, everywhere,” the Cloudflare co-founders said.

They also noted, “Today’s actions are not a cost-cutting exercise or an assessment of individuals’ performance; they are about Cloudflare defining how a world-class, high-growth company operates and creates value in the ...