Cloudflare announces major layoffs

Cloudflare has announced it will lay off 1,100 employees, roughly 20% of its workforce, as it restructures for the 'agentic AI era.' CEO Matthew Prince described the move as necessary to adapt to a 'paradigm shift' in the software industry.

Despite reporting record revenue, the company stated that AI efficiencies have made many support and engineering roles obsolete.

The announcement triggered a sharp decline in Cloudflare's stock price as investors reacted to slowing growth forecasts.