Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high
Cloudflare cut 1,100 jobs, attributing it to AI productivity gains, despite record revenue.Summary
Cloudflare announced a 20% workforce reduction, equating to 1,100 employees, citing significant productivity increases driven by artificial intelligence. This move comes as the company reported a record quarterly revenue of $639.8 million, a 34% year-over-year increase. CEO Matthew Prince stated the layoffs are not for cost-cutting but a strategic shift to adapt to the 'agentic AI era,' emphasizing that AI has made employees exponentially more productive. The company has seen a more than 600% increase in AI usage internally over the last three months, with AI agents reviewing 100% of code produced by the R&D team and employees across all departments utilizing AI for daily tasks. Despite the layoffs, Cloudflare anticipates hiring more employees in 2027 as those embracing AI tools demonstrate unprecedented productivity.
(Source：TechCrunch)