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Cloudflare cuts over 1,100 jobs as AI adoption reshapes internal operations

Cloudflare is cutting more than 1,100 jobs globally after AI adoption inside the company grew over 600% in three months. Affected employees will receive full base pay through end of 2026.

1 min read
Human resources

Cloudflare cuts over 1,100 jobs as company restructures around AI

Cloudflare will eliminate more than 1,100 positions globally as part of a restructuring tied to increased use of artificial intelligence across the company, according to an internal memo sent to employees on May 8.

The connectivity cloud company said internal AI adoption has grown more than 600 percent over the past three months. Employees in engineering, finance, human resources, and marketing now rely on AI agents for routine tasks.

Cloudflare framed the layoffs as organizational adaptation to what it called the "agentic AI era" rather than cost-cutting or performance-based dismissals. The company said it is "reimagining every internal process, team and role across the company."

What departing employees receive

Affected workers will receive severance packages that include:

  • Full base pay through the end of 2026
  • Continued healthcare coverage in the US through December 31
  • Additional equity vesting benefits through August 15
  • Prorated equity vesting for employees who haven't reached their one-year vesting cliff

The company will notify all affected employees directly via both official and personal email addresses.

Timeline and communication

Cloudflare plans to complete the restructuring in a single phase to minimize prolonged uncertainty among staff. The company said the decision "is not a reflection of the individual work or talent of those leaving us."

For HR professionals, this restructuring illustrates how organizations are responding to rapid AI adoption. Learn more about AI for Human Resources and how to manage workforce transitions in an AI-driven environment. HR leaders can also explore the AI Learning Path for CHROs to understand strategic implications of AI-driven organizational change.

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