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Cloudflare to lay off 1,100 employees in AI shift

New Delhi

Cloudflare has announced plans to cut more than 1,100 jobs worldwide as part of a major restructuring driven by the rapid adoption of artificial intelligence across its operations. The company said internal use of AI has surged by over 600% in recent months, with tools increasingly handling tasks in engineering, finance, HR, and marketing. It described the move as a shift toward an “agentic AI era” rather than a cost-cutting exercise. Cloudflare stated that affected employees will receive severance packages including continued pay through 2026, healthcare support in the US, and extended equity benefits. The restructuring will be completed in a single phase as the company reshapes its workforce to stay competitive in AI-driven technology markets.

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