Cloudflare has announced that it will reduce its global workforce by about 20% as part of a major restructuring plan. The company said the decision is linked to the rapid growth and adoption of artificial intelligence tools, which are changing how its operations are managed.
Cloudflare is a major internet infrastructure and cybersecurity company that provides services to websites and online platforms around the world. As part of this restructuring, the company plans to cut more than 1,100 jobs globally.
At the end of 2025, Cloudflare had 5,156 full-time employees. After the planned layoffs, the company expects a significant reduction in its workforce.
The company also said it expects to incur costs between $140 million and $150 million in the second quarter due to severance payments and other expenses related to the job cuts.
Along with the restructuring announcement, Cloudflare also forecast that its second-quarter revenue will be slightly below what Wall Street analysts had expected.
The company explained that artificial intelligence is playing a major role in reshaping its operations, allowing certain tasks to be automated or handled more efficiently. This shift is one of the key reasons behind the decision to reduce staff.
Cloudflare stated that the changes are aimed at improving long-term efficiency and helping the company focus more on future growth areas, especially AI-driven services.
The announcement reflects a broader trend in the tech industry, where several companies are adjusting their workforce and operations as artificial intelligence becomes more widely used.