Cloudflare stock tumbles 13% on 1,100 layoffs and AI-first pivot
- Source
- Bloomberg
- Time
- 9:34 PM
- Weight
- 95/100
Cloudflare has announced a significant workforce reduction, cutting approximately 1,100 jobs as part of a transition to an "agentic AI-first" operating model. This reduction represents about one-fifth of the company's total staff and spans multiple departments, including engineering, finance, and marketing.
CEO Matthew Prince stated that the decision follows a 600% surge in internal AI usage over the past three months, with the company now utilizing automated workflows for thousands of daily tasks. The market responded sharply to the news, with Cloudflare’s stock price falling by 13%.