Cloudflare Axes 1,100 Jobs in Pivot to Agentic AI Model
Cloudflare posts strong Q1 revenue but plans massive layoffs as it restructures around agentic AI. Stock tanks after hours.
Cloudflare is slashing more than 1,100 positions worldwide as the company barrels toward what it calls an "agentic AI-first operating model." The cuts come despite a solid Q1 earnings report showing revenue of $639.8 million — up 34% year over year.
Wall Street didn't love the combination. NET shares dropped more than 13% in after-hours trading following the announcement.
The restructuring signals Cloudflare is betting big on AI agents to replace significant chunks of its human workforce. It's a dramatic operational shift for one of the internet's largest infrastructure companies.
Strong top-line growth paired with aggressive headcount reduction tells a familiar story in tech right now: revenue is climbing, but companies are racing to swap bodies for bots. Investors clearly aren't sure the math works out yet.