Cloudflare credits AI with eliminating 1,100 roles as it posts record quarterly revenue

Cloudflare said it will cut roughly 20% of its staff—about 1,100 roles—even as it reported record first-quarter revenue, underscoring how generative AI is reshaping workforces across tech. Revenue rose 34% to $639.8 million, while the net loss widened to $62.0 million from $53.2 million a year earlier. CEO Matthew Prince framed the reductions as a consequence of AI-enabled productivity, not a cost-cutting move, noting internal use of autonomous AI agents for code review and widespread agent usage across engineering, HR, finance and marketing. The company highlighted $2.5 billion in remaining performance obligations, up 34%, and said layoffs would span most teams and geographies, excluding quota-carrying sales roles. Prince said Cloudflare expects to keep hiring and could end 2027 with more employees than at any point in 2026. The move mirrors a broader industry pattern of AI-fueled efficiency drives amid top-line growth but uneven profitability.

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