Cloudflare, an internet security and cloud networking firm, has dramatically restructured, with internal use of artificial intelligence exploding more than 600% in just three months. The company has made massive cuts, with co-founders Matthew Prince and Michelle Zatlyn warning staff that the company’s way of working has fundamentally changed. The cuts amount to roughly one-fifth of Cloudflare's global workforce.
dramatically restructures. Founders told staff that the company’s internal use of artificial intelligence has exploded more than 600% in just three months. The internet security and cloud networking firm revealed the massive cuts Thursday alongside first-quarter revenue of $639.8 million, a 34% increase from a year earlier, reportedFounders warned staff that the company’s internal use of artificial intelligence has exploded more than 600% in just three months.
“The way we work at Cloudflare has fundamentally changed,” co-founders Matthew Prince and Michelle Zatlyn told employees in a savage internal memo. “We don’t just build and sell AI tools and platforms. We are our own most demanding customer,” they wrote, adding that workers across engineering, HR, finance, and marketing now run “thousands of AI agent sessions each day.
” “That means we have to be intentional in how we architect our company for the agentic AI era,” the memo, obtained by Coinbase boss fires 700 workers in 6:55 a.m. email saying company must become 'lean, fast, and AI-native' Apple agrees to pay iPhone buyers $250M settlement over Siri AI delay – here's how to get in on the payout Elite corporate lawyers accused of earning millions on insider trading, using bizarre code like, 'How's the rabbi?
' Cloudflare insisted the layoffs were “not a cost-cutting exercise” or a reflection of employee performance, but rather part of a sweeping effort to “reimagine every internal process, team, and role across the company. ” The company, founded in 2009, had 5,156 full-time employees at the end of 2025, meaning the cuts amount to roughly one-fifth of its global workforce.
Cloudflare’s founders said all employees would be notified directly by email within an hour, rather than through managers, calling the move a one-time, decisive reset designed to avoid “smaller, repeated cuts” that could drag out uncertainty. The company, founded in 2009, had 5,156 full-time employees at the end of 2025, meaning the cuts amount to roughly one-fifth of its global workforce.
Departing workers are being offered unusually generous severance packages, including full base pay through the end of 2026, continued US health care coverage through year’s end, and equity vesting through Aug. 15 — even for some employees who had not yet reached standard vesting cliffs. The company said it expects to take on $140 million to $150 million in restructuring-related charges, mostly tied to severance, benefits, and related costs, with most expenses landing in the second quarter.
Cloudflare said the restructuring should be substantially complete by the end of the third quarter as it pushes to reshape itself into a faster, AI-first company. Coinbase boss fires 700 workers in 6:55 a.m. email saying company must become 'lean, fast, and AI-native' Apple agrees to pay iPhone buyers $250M settlement over Siri AI delay – here's how to get in on the payoutStream It Or Skip It: 'Legends' On Netflix, About Customs Agents Who Go Undercover To Stop The Flow Of Heroin Into England In The Early '90s
Cloudflare Restructuring Layoffs Artificial Intelligence AI Explosion Sweeping Effort Reimagining Internal Processes Teams Roles Global Workforce
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