Cloudflare Cuts 20 Percent of Workforce After Posting Record Revenue

Cloudflare reduced its workforce by 20 percent earlier this month after reporting record revenue growth and an expanding global customer base. The company stated that the majority of positions eliminated were in middle management, finance, legal, internal auditing, and revenue recognition.

Cloudflare said the reductions align with its adoption of agentic AI systems that can perform measurement and oversight tasks previously handled by employees. The firm noted it maintains a record number of open positions in areas it described as driving growth.

Other technology companies have announced similar workforce reductions this year. Jack Dorsey’s Block cut 40 percent of its staff in February, and Meta reduced its workforce by 10 percent this week. A report from Challenger, Gray & Christmas found that 49,135 U.S. layoffs this year have been linked to AI, nearly matching the total reported for 2025.

Cloudflare pointed to a Wall Street Journal op-ed and an internal blog post explaining the severance package offered to affected employees.