capital · May 20, 2026
Cloudflare Cuts 1,100 Jobs Representing 20% of Staff in AI Transformation Restructuring
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Cloudflare reduced its workforce by more than 1,100 employees and recorded $140 to $150 million in restructuring charges primarily in Q2 2026 as part of an AI-first operating model. CEO Matthew Prince announced the headcount reduction tied to the company's pivot. Susquehanna analyst Shyam Patil raised the price target on Cloudflare to $200 from $190 while maintaining a Neutral rating following the Q1 FY2026 earnings beat. Cloudflare reported 34% year-over-year revenue growth alongside the 20% staff reduction.
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