Cloudflare to Cut 20% of Workforce Amid AI Restructuring

Cloudflare said it will cut about 20% of its workforce as the company restructures operations around the growing adoption of artificial intelligence tools, Reuters reported.

Cloudflare said the layoffs reflect changes to workflows and organizational structure rather than employee performance or short-term financial pressures. (Photo: Cloudflare Facebook)

The internet infrastructure and cybersecurity company plans to eliminate more than 1,100 jobs globally. Cloudflare employed 5,156 full-time workers at the end of 2025.

The company expects to record restructuring charges of between $140 million and $150 million during the second quarter.

Cloudflare also forecast second-quarter revenue of $664 million to $665 million, slightly below analysts’ expectations of $665.3 million, according to LSEG data. Adjusted earnings are projected at 27 cents per share, in line with estimates.

Shares of the San Francisco-based company fell about 19% in extended trading despite stronger-than-expected first-quarter results.

CEO Matthew Prince and co-founder Michelle Zatlyn told employees the company is redesigning operations to adapt to what they described as an “agentic AI era.”

Cloudflare said the layoffs reflect changes to workflows and organizational structure rather than employee performance or short-term financial pressures.