Cloudflare cuts 20% of workforce citing massive AI productivity gains
cloudflare cut 1,100 jobs (20%) as ceo matthew prince cited 600% higher internal ai usage and productivity gains, despite record $639.8m q1 revenue.
Cloudflare announced it is laying off approximately 1,100 employees, representing 20% of its workforce, excluding sales staff with quotas. CEO Matthew Prince attributed the reduction directly to a 600% surge in internal AI usage over the last three months, which created 'massive productivity gains' and rendered specific support roles obsolete. The layoffs coincide with a record quarterly revenue of $639.8 million, a 34% year-over-year increase, and a remaining performance obligation of $2.5 billion. Prince stated that all code produced by the R&D team is now reviewed by autonomous AI agents and that the company will continue hiring productive employees in 2027.