SF-Based Cloudflare Slashes 1,100 Jobs, Citing 'Agentic AI Era'
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SF-Based Cloudflare Slashes 1,100 Jobs, Citing 'Agentic AI Era'
"“Today is a hard day,” the company said in an internal memo obtained by Business Insider. “This decision unfortunately means saying goodbye to teammates who have contributed meaningfully to our mission and to building Cloudflare into one of the world's most successful companies. We want to be clear that this decision is not a reflection of the individual work or talent of those leaving us. Instead, we are reimagining every internal process, team, and role across the company.”"
"The company says in the memo that its internal use of AI has surged “more than 600% in the last three months alone” across multiple departments, and “That means we have to be intentional in how we architect our company for the agentic AI era.”"
"The memo insists that the layoffs are not “a cost-cutting measure.” As Reuters reports, Cloudflare had around 5,150 employees as of today, so this represents a headcount reduction of around 20%."
Cloudflare, a Bay Area website optimization and security company, announced layoffs affecting 1,100 employees worldwide, with notices going out immediately. The company attributed the decision to the rise of AI and the need to rethink how it operates. Cloudflare stated that its internal use of AI has surged more than 600% in the last three months across multiple departments. The company said it must architect the organization for the agentic AI era. It emphasized that the layoffs are not a reflection of individual performance or talent and insisted the move is not a cost-cutting measure. With about 5,150 employees, the reduction is roughly 20%.
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