Cloudflare is cutting staff, laying off hundreds of employees after launching AI

Cloudflare plans a 20% workforce reduction

The internet‑infrastructure and cybersecurity management company announced its intention to eliminate about twenty percent of its employees as part of a restructuring related to the implementation of artificial intelligence systems. In the last quarter, Cloudflare increased its use of AI sixfold.

- Reduction: 1,100 jobs worldwide.

- Total headcount (end of 2025): 5,156 people.

- Program costs: $140–$150 million.

CEO Matthew Prince and co‑founder Michelle Zatlyn emphasized in a letter to employees that the shift to “agency” AI will require a review of all departments and positions. The cuts are not related to employee performance or a desire to cut costs; they are a direct consequence of the new business model. Over the past three months, Cloudflare has used AI six times more frequently, which has already led to noticeable changes in how its units operate.

Among investors and analysts, concern is growing: AI‑driven automation could destroy industries and accelerate job losses among the most vulnerable groups. According to Goldman Sachs estimates, in 2025 each month between 5,000 and 10,000 jobs were disappearing due to AI.