Cloudflare has announced that it will lay off 20 percent of its employees - about 1,100 people. The company attributed this decision to a restructuring aimed at "preparing for the era of agent-based artificial intelligence."
According to the report, the decision was announced simultaneously with the financial report for the first quarter of 2026. According to the report, the company's total revenue was $ 639.8 million and its net loss was $ 22 million. After the news, the value of Cloudflare shares fell by 16 percent to $ 215.5.
The company said that the implementation of artificial intelligence technologies has increased by 600 percent in the last three months, and this change requires restructuring internal business processes. Cloudflare emphasized that the layoffs are not aimed at reducing costs, but at adapting to the future business model.
The laid-off employees will be paid salary compensation until the end of 2026. In addition, they will retain the right to own company shares for a certain period.
