Overview
- Cloudflare, which announced the move Thursday, will eliminate more than 1,100 roles worldwide, or about one‑fifth of its workforce.
- Leaders said the redesign follows a surge in internal AI use of more than 600% in three months, with employees using AI agents to handle daily tasks across teams.
- Departing employees will receive full base pay through the end of 2026, continued U.S. healthcare through year‑end, and equity vesting through August 15 with one‑year cliffs waived where needed.
- The company expects $140 million to $150 million in restructuring charges, mostly recorded in Q2, and it aims to substantially finish the overhaul by the end of Q3.
- Shares fell about 18% in after‑hours trading following a Q1 revenue beat of $639.8 million, up 34% year over year, and slightly lower Q2 revenue guidance of $664 million to $665 million.