people · May 16, 2026
Cloudflare Cuts 1,100 Jobs in AI Restructuring After Record Q1 Revenue
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Cloudflare cut approximately 1,100 employees, or 20% of its 5,483-person workforce, on May 8, 2026. The restructuring targets engineering, operations, marketing, recruiting and other non-sales roles while sparing quota-carrying sales positions. Cloudflare expects completion by the end of Q3 2026 and projects 2026 revenue of $2.805B to $2.813B. CEO Matthew Prince stated internal AI usage rose 600% in three months with thousands of AI agent sessions daily across departments. Cloudflare co-founder and CEO Matthew Prince described the move as redefining operations for the agentic AI era rather than a cost-cutting exercise.