Cloudflare is axing more than 1,100 employees ina worldwide bloodbathas the San Franciscotech giantdramatically restructures. Founders told staff that the company’s internal use of artificial intelligence has exploded more than 600% in just three months.
The internet security and cloud networking firm revealed the massive cuts Thursday alongside first-quarter revenue of $639.8 million, a 34% increase from a year earlier, reportedThe San Francisco Chronicle.
“The way we work at Cloudflare has fundamentally changed,” co-founders Matthew Prince and Michelle Zatlyn told employees in a savage internal memo.
“We don’t just build and sell AI tools and platforms. We are our own most demanding customer,” they wrote, adding that workers across engineering, HR, finance, and marketing now run “thousands of AI agent sessions each day.”
“That means we have to be intentional in how we architect our company for the agentic AI era,” the memo, obtained byBusiness Insider, stated.
Cloudflare insisted the layoffs were “not a cost-cutting exercise” or a reflection of employee performance, but rather part of a sweeping effort to “reimagine every internal process, team, and role across the company.”
The company, founded in 2009, had 5,156 full-time employees at the end of 2025, meaning the cuts amount to roughly one-fifth of its global workforce.
It’s unclear how many Bay Area employees would be affected.
Cloudflare’s founders said all employees would be notified directly by email within an hour, rather than through managers, calling the move a one-time, decisive reset designed to avoid “smaller, repeated cuts” that could drag out uncertainty.
“We’ve asked the team to do this only once.”
Source: California Post – Breaking California News, Photos & Videos
