Cloudflare lays off over 1,100 employees

Cloudflare is reducing its global workforce by over 1,100 employees, citing a fundamental shift in its operational approach driven by the rise of AI. The company has seen a more than 600% increase in its own AI usage, with employees across departments leveraging AI agents daily. This decision is framed not as a cost-cutting measure but as a strategic reimagining of internal processes and roles to optimize for the 'agentic AI era.' Departing employees will receive industry-leading severance packages, including full base pay through 2026 and extended healthcare coverage.