(May 8): Cloudflare Inc plans to cut more than 1,100 jobs globally as it accelerates its shift to an agentic AI-first operating model.
“Cloudflare’s usage of AI has increased by more than 600% in the last three months alone,” chief executive officer Matthew Prince wrote in a letter to employees. Staff across functions from engineering to HR, finance and marketing, are running thousands of AI-driven workflows each day, he added.
The cybersecurity company expects to incur charges of US$140 million ($177.64 million) to US$150 million from the layoffs, with most of the costs recognised in the second quarter, according to a Thursday filing.
The San Francisco-based company reported first-quarter results that beat expectations and raised its full-year outlook for adjusted profit and revenue.
Cloudflare joins companies such as Block Inc in citing artificial intelligence as a driver of workforce cuts as firms look to streamline operations and improve efficiency.
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