Cloudflare announced a 20% workforce reduction, eliminating approximately 1,100 jobs, attributing the layoffs to increased productivity from AI rather than cost-cutting despite reporting a record quarterly revenue of $639.8 million, a 34% year-over-year increase. CEO Matthew Prince emphasized that AI has significantly boosted employee productivity across all departments, leading to fewer support roles needed, even as the company plans to continue hiring in 2027.
Cloudflare Says AI Made 1,100 Jobs Obsolete, Even as Revenue Hit a Record High
