Cloudflare is laying off more than 1,100 employees as the cybersecurity company says it is reorganizing for the "agentic AI era," according to a memo sent to staff on Thursday.
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The cuts came hours after the company reported first-quarter earnings that beat Wall Street expectations, though shares fell sharply in after-hours trading — more than 14% at the time of publication.
Cloudflare employed 5,483 people as of the end of March, meaning the cuts affected about 20% of staff.
In the memo, Cloudflare executives said the company's use of AI has surged "more than 600% in the last three months alone," and argued the company needs to rethink how it is structured in order to move faster and deliver more value to customers.
Some truth to that. There’s a whole bunch of back office you needed to be public which AI has made a lot more streamlined. Very few engineers or customer-facing sales people impacted by our layoff. And we’ll continue to hire like crazy in those roles — like we did as a startup. — Matthew Prince ???? (@eastdakota) May 8, 2026
The layoffs make Cloudflare the latest tech company to cite AI-driven efficiency gains and organizational changes as reasons for reducing head count.
Read the full memo below: