Cloudflare to Cut 1,100 Jobs as It Reorganizes for Agentic AI and Reports Strong Q1 Results

Cloudflare will cut more than 1,100 jobs globally, about 20% of its workforce, the company announced on Thursday, May 7. The internet infrastructure and cybersecurity company had 5,156 full-time employees at the end of 2025. It expects charges of $140 million to $150 million tied to the reductions in the second quarter.

3 million according to LSEG-compiled data. Adjusted earnings are projected at 27 cents per share.

Cloudflare CEO Matthew Prince and co-founder Michelle Zatlyn said in a message to employees that the company was reimagining every team and function to operate in an agentic AI era. The job cuts reflect a redesign of internal processes and roles rather than a response to employee performance or short-term cost pressures.

Cloudflare’s own use of AI has increased more than sixfold over the past three months, prompting major changes in how teams operate.

Shares of the San Francisco-based company dropped roughly 19% in extended trading despite the stronger first-quarter results. 3% so far this year. A logo of Cloudflare sits outside the company's house on the opening day of the 55th annual meeting of the World Economic Forum in Davos, Switzerland, on January 20, 2025.

The announcement comes as payments firm Block said in February that it would cut more than 4,000 jobs, nearly half its workforce, as part of an overhaul to embed AI across its operations. S. industries.

Rappler reported that concerns are growing among investors and economists that AI-driven automation could disrupt industries and accelerate job losses in sectors most vulnerable to automation. Cloudflare is based in San Francisco.