Cloudflare cut roughly 20% of its workforce in May—over 1,100 jobs—as part of a structural pivot into the agentic AI era following a 600% surge in internal AI tool usage. The company also posted 34% year-over-year revenue growth to $639.8 million and beat EPS forecasts.
Cloudflare CEO Matthew Prince forecast mass layoffs across the tech sector over the next six to 12 months, urging companies to act early to spare employees from prolonged job searches later.
In May, Cloudflare eliminated more than 1,100 positions, representing roughly 20% of its global workforce, as part of a structural shift into the agentic AI era after internal AI tool usage climbed 600%.
The company delivered 34% year-over-year revenue growth to $639.8 million, driven by a 73% increase in deals exceeding $1 million and a 25% rise in large enterprise customers, while earnings per share topped analyst expectations.
Cloudflare shares are up 13% year to date as the firm leverages AI-driven security demand; management plans to balance structural innovation with workforce planning ahead of industry-wide downsizing.
