- Tech giant Cloudflare is planning to cut over 1,100 employees worldwide, which represents approximately a fifth of its total workforce.
- The announcement of job losses coincided with the company reporting a 34 per cent year-on-year increase in first-quarter revenue, reaching $639.8 million.
- Co-founders Matthew Prince and Michelle Zatlyn attributed the cuts to a fundamental change in how Cloudflare operates, driven by a 600 per cent surge in AI usage.
- Cloudflare estimates it will incur charges between $140 million and $150 million due to the workforce reduction, mainly covering severance payments and employee benefits.
- Employees departing the company will be offered a package including their full base pay through to the end of 2026, with US employees also receiving healthcare support until the year-end.
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