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Cloudflare announces approximately 20% layoffs to reorganize operations around AI tool applications
Crypto News reports that on May 8th, American cybersecurity service company Cloudflare announced it would lay off approximately 20%, or over 1,100 employees, to reorganize operations around AI tool applications.
CEO Matthew Prince stated that the company is redesigning each team and function to adapt to the era of agent-based AI.
Cloudflare said that its own AI usage increased more than sixfold over the past three months. This round of layoffs is a redesign of internal processes and roles, not due to employee performance or short-term cost pressures.
Cloudflare expects second-quarter revenue to be approximately $664 million to $665 million, slightly below analysts’ expectations of $665.3 million.