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Tech company Cloudflare announced on Thursday as part of its first-quarter 2026 earnings report that it is laying off about 20 percent of its workforce, or 1,100 people, due to artificial intelligence. It is the first mass layoff in the company’s 16-year history.
Cloudflare, which provides internet security, cloud services, and performance to millions of websites around the world, has joined a growing list of tech companies such as Amazon, Microsoft, and Meta. The companies have reported revenue growth alongside massive layoffs, both of which they attribute to the use of artificial intelligence.
The company is laying off employees from all teams and geographies, except for salespeople responsible for revenue quotas, TechCrunch reported, citing CFO Thomas Seifert.
Matthew Prince, Cloudflare’s co-founder and CEO, said that “we’ve never done something like this” in the company’s history.
The move to reduce the workforce came as the San Francisco-based company reported quarterly revenue of more than $639 million, up 34% from the same period in 2025 and the highest in the company’s history.
Also Read: Microsoft Layoffs 9,000 Jobs Slashed in Bold Restructuring Move
However, despite the revenue increase, the technology company faced a loss of $62.0 million, compared to a loss of $53.2 million in the same quarter last year.
According to Prince and Cloudflare co-founder and president Michelle Zatlyn, the layoffs are not a cost-cutting initiative or an evaluation of individual performance. They believe that Cloudflare is establishing how a world-class, fast-growing company operates and creates value in the agentic AI era.
(Source: TechCrunch)
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