Cloudflare reported a significant workforce reduction of approximately 20%, translating to 1,100 job cuts, during its first quarter 2026 earnings announcement. Co-founder and CEO Matthew Prince described this as the first mass layoff in the company's 16-year history, attributing the cuts to enhanced productivity driven by AI rather than cost-cutting measures. Despite these layoffs, Cloudflare achieved record quarterly revenues of $639.8 million, a 34% year-over-year increase, although it faced a loss of $62.0 million, wider than the previous year. Prince emphasized that the company's adoption of AI has surged by over 600% in the last three months, significantly enhancing productivity across teams. He noted that the internal use of AI-powered tools, including the Workers platform, has transformed operations, enabling developers to produce code more efficiently.
Cloudflare Announces 1,100 Job Cuts as AI Drives Revenue to Record High
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