Cloudflare Cuts 1,100 Jobs — CEO Says Company Is 'Architecting for the Agentic AI Era'
Cloudflare — the internet infrastructure giant that powers a significant fraction of the world’s web traffic — announced today that it is laying off approximately 1,100 employees, representing roughly 20% of its 5,156-person workforce. The restructuring comes alongside record quarterly revenue and a stark, unusually candid explanation from CEO Matthew Prince: the company is reorganizing around AI agents. The Numbers 1,100+ employees laid off — approximately 20% of total workforce Q1 2026 revenue: $639.8 million — up 34% year-over-year, beating analyst expectations Stock reaction: -18% to -19% on the day of announcement Internal AI agent usage: up 600% in three months, according to Prince’s blog post Severance: through year-end 2026 for affected employees This is a company that is growing strongly by traditional financial metrics and simultaneously cutting one-fifth of its staff. The explanation matters. ...