Cloudflare to Cut 1,100 Jobs, 20% of Workforce

Cloudflare is laying off 1,100 people, representing 20% of its staff, the latest in a series of major technology-sector cuts driven by rapid adoption of artificial intelligence tools. The San Francisco web performance and cybersecurity company announced the job cuts on the same day it reported its first-quarter earnings. 8 million in the first quarter.

9 million. The company projected revenue of $664 million to $665 million for the second quarter, below the $666 million Wall Street anticipated. Cloudflare’s stock dropped around 18% in after-hours trading after the announcement.

Matthew Prince, co-founder and chief executive, and Michelle Zatlyn, co-founder and president, told employees in an e-mail that the way the company works has changed. “The way we work at Cloudflare has changed. We don’t just build and sell AI tools and platforms.

We are our own most demanding customer,” they said. Cloudflare’s use of AI has jumped more than 600% in the last three months. Employees in engineering, HR, finance and marketing are running thousands of AI agent sessions each day.

Cloudflare executives stated that they are making these changes now because making smaller, repeated cuts or dragging a reorganization out over multiple quarters creates prolonged emotional uncertainty for employees and stalls the ability to build. The company estimates that severance and other restructuring will cost between $140 million and $150 million for 2026.

As of December, Cloudflare had 5,156 employees.

The company did not specify how many of the cuts will occur in its San Francisco headquarters, which has offices in Asia, Europe and the Middle East as well. The announcement marks the latest in a wave of tech layoffs this week. Coinbase said it would cut 14% of its workforce, or roughly 700 workers.

PayPal is reportedly planning to slash 20% of its staff. S. tech employers announced 85,411 job cuts, up 33% from the same period last year, according to Challenger, Gray & Christmas.

Other companies including Meta, Block and Oracle have announced layoffs this year. Separately, Commerzbank plans 3,000 job cuts and is raising targets as it fends off a UniCredit takeover. The article detailing these developments was published May 7, 2026 and updated May 8, 2026.