Cloudflare Cuts More Than 20% of Workforce Despite Record Revenue Growth, Citing AI Shift
Cloudflare cut more than 20% of its workforce despite record revenue growth, strong free cash flow and customer additions, CEO Prince said, describing the move as an AI-driven overhaul rather than a response to weak demand. He said he had not found another U.S. public company growing more than 30% that had made cuts of that scale.
Prince said most of the reductions affected roles he described as “measurers,” including middle managers and staff in operations, marketing and finance, as AI tools allow continuous auditing of business risks, faster financial closes and fewer mistakes. He added that Cloudflare is still hiring for “builders or sellers,” saying the company received almost 1 million applications for 1,111 paid internships this summer and expects most interns to receive full-time offers.
From the sources (2 posts)
@sarthakgh“We haven’t found another example in U.S. business history of a public company growing at more than 30% that laid off more than 20% of its workforce. AI isn’t coming for builders or sellers, but it is coming for measurers.”
@wallstengineCloudflare CEO Prince on how AI changes who gets laid off first: Two weeks ago I laid off more than 20% of my workforce. I didn’t do it because Cloudflare is struggling. We posted record revenue growth, have strong free cash flow and are a