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Cloudflare has announced its first mass layoffs, cutting about 1,100 jobs – about 20% of its workforce – as the company says artificial intelligence has made many roles redundant.
Cloudflare co-founder and CEO Matthew Prince described the move as unprecedented in the company’s 16-year history. Speaking at an earnings call, Prince emphasized that the layoffs were not caused by financial difficulties or employee performance, but by a rapid shift towards AI-powered operations.
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“We’ve never done anything like this in Cloudflare’s history,” Prince said. CFO Thomas Seifert added that this restructuring is impacting workers globally as companies adapt to what executives are calling the “age of agent AI.”
In a statement accompanying the layoffs, Prince and Cloudflare president Michelle Zatlyn said the company is redesigning how it operates in an AI-driven world. “Today’s action is not an attempt to reduce costs,” they said. “This is about Cloudflare defining how world-class, high-growth companies create value in the era of agentive AI.”
Despite posting a wider quarterly loss of $62 million compared to $53.2 million a year earlier, Cloudflare pointed to strong future demand, and revealed that it now has more than $2.5 billion in remaining performance obligations — contract revenue that has yet to be delivered. The announcement places Cloudflare alongside tech giants like Meta, Microsoft, and Amazon, which are increasingly linking workforce reductions to AI adoption.
