Cloudflare lays off 1100 employees as part of global transformation
Cloudflare, a well-known technology company, has announced the layoff of over 1100 employees worldwide, representing one-fifth of its workforce, with the aim of transitioning to an AI-first operational model.
According to Bloomberg, Cloudflare’s CEO Matthew Prince noted that the use of artificial intelligence within the company has increased by over 600% over the last three months. AI is now actively used in various departments, including development, HR, finance, and marketing. The operational costs of the workforce reduction may reach between $140 million to $150 million, with most of these expenses expected in the second quarter.
This move is not only a result of implementing new technologies but also aligns with investor demands for cost optimization. Notably, the investment fund Irenic Capital Management, holding about 2.5% of Cloudflare’s shares, has called for increased business efficiency. This also involves closing over 300 vacancies to streamline processes.
The current trend of workforce reduction in favor of automation and AI is also observed in other companies. For example, in April 2026, Snapchat laid off about 1000 employees, constituting 16% of its workforce, amid investor pressure and a shift towards more active use of artificial intelligence.
This case is part of a broader industry trend where large technology companies are adapting to new realities, seeking a balance between innovation and productivity.
