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Cloudflare is laying off 1,100 employees to prepare for 'the agentic AI era'

Cloudflare announced layoffs of 1,100 staff as it reorganizes for 'the agentic AI era,' despite better-than-expected Q1 earnings. Shares dropped over 14% after hours. The company cited a 600% surge in AI usage and offered generous severance including full pay through end of 2026.

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Cloudflare is laying off 1,100 employees to prepare for 'the agentic AI era'
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Key points

  • Cloudflare cuts 1,100 jobs to restructure for the era of agentic AI.
  • Q1 earnings beat expectations but shares fell sharply after hours.
  • Internal AI usage surged more than 600% in three months.
  • Affected employees receive full base pay through 2026, healthcare, and accelerated equity vesting.

Highlights and analysis are generated automatically and may contain errors. Check the original source.

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