people · May 17, 2026
Cloudflare Cuts 1,100 Jobs as AI Adoption Surges 600% in Three Months
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Cloudflare CEO Matthew Prince announced on May 7, 2026 the company would cut approximately 1,100 positions, or 20% of its global workforce of about 5,500 employees at the end of Q1. The restructuring targets all teams except revenue-carrying salespeople and forms part of a shift to an agentic AI-first operating model. Internal AI usage increased more than 600% in the last three months, with thousands of AI agent sessions run daily across engineering, finance, HR, and marketing teams. Virtually the entire R&D team now uses the Cloudflare Workers platform including its vibe coding feature, and 100% of code produced this way for products undergoes review by autonomous AI agents. Cloudflare reported record Q1 2026 revenue of $639.8 million, up 34% year-over-year, alongside a GAAP operating loss of $62.0 million.