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Cloudflare to Cut About 20% of Staff as It Restructures Around AI Tools

Cloudflare said it will eliminate more than 1,100 jobs globally in an AI-focused restructuring, with shares falling about 18% to 19% after hours after the company reported first-quarter revenue of $639.8 million.

Fact Check
Every key claim is confirmed by multiple authoritative sources. Reuters, the SF Chronicle, SiliconAngle, and MarketWatch all confirm the ~20% workforce reduction affecting more than 1,100 employees globally, framed as an AI-first restructuring. The StockTitan SEC 8-K filing summary and multiple news outlets confirm Q1 2026 revenue of exactly $639.8 million. The $140M-$150M charge range expected in Q2 is confirmed by the SEC filing summary, SiliconAngle, SF Chronicle, and MarketWatch. The claim accurately characterizes all material facts reported on May 7, 2026.
Summary

Cloudflare said it will cut about 20% of its workforce, eliminating more than 1,100 jobs globally, as it restructures around artificial intelligence tools. The company expects $140 million to $150 million in second-quarter charges tied to the layoffs. It reported first-quarter revenue of $639.8 million, and its shares fell sharply in after-hours trading, with reports putting the decline at about 18% to 19%. Earlier reporting on the same development also said Cloudflare’s internal use of AI rose more than sixfold over the prior three months and that its second-quarter revenue guidance of $664 million to $665 million was slightly below expectations.

Terms & Concepts
  • Artificial intelligence: Computer systems that perform tasks typically requiring human judgment, such as generating content, analyzing data, or automating workflows.
  • After-hours trading: Stock trading that takes place after regular market hours, often reacting quickly to earnings or corporate announcements.
  • Restructuring: A corporate reorganization that can include layoffs, budget shifts, or operational changes intended to realign a company’s strategy and costs.