Bloodbath at Silicon Valley giant as CEO’s savage – Business News
Cloudflare is axing more than 1,100 staff in a worldwide massacre as the San Francisco tech giant dramatically restructures. Founders advised employees that the company’s inside use of artificial intelligence has exploded more than 600% in simply three months.
The web security and cloud networking firm revealed the large cuts Thursday alongside first-quarter income of $639.8 million, a 34% increase from a 12 months earlier, reported The San Francisco Chronicle.
Cloudflare is axing more than 1,100 staff in a worldwide massacre as the San Francisco tech giant dramatically restructures. AP
“The way we work at Cloudflare has fundamentally changed,” co-founders Matthew Prince (above) and Michelle Zatlyn advised staff in a savage inside memo. Bloomberg through Getty Images
“We don’t just build and sell AI tools and platforms. We are our own most demanding customer,” Prince and Zatlyn (above) added. Bloomberg through Getty Images
“The way we work at Cloudflare has fundamentally changed,” co-founders Matthew Prince and Michelle Zatlyn advised staff in a savage inside memo.
“We don’t just build and sell AI tools and platforms. We are our own most demanding customer,” they wrote, including that staff throughout engineering, HR, finance, and advertising 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 Business Insider, said.
Cloudflare insisted the layoffs have been “not a cost-cutting exercise” or a reflection of worker efficiency, however slightly half of a sweeping effort to “reimagine every internal process, team, and role across the company.”
The company, based in 2009, had 5,156 full-time staff at the tip of 2025, that means the cuts quantity to roughly one-fifth of its world workforce.
It’s unclear how many Bay Area staff can be affected.
Cloudflare’s founders stated all staff can be notified instantly by electronic mail within an hour, slightly than by managers, calling the transfer a one-time, decisive reset designed to keep away from “smaller, repeated cuts” that might drag out uncertainty.
The company, based in 2009, had 5,156 full-time staff at the tip of 2025, that means the cuts quantity to roughly one-fifth of its world workforce. SOPA Images/LightRocket through Getty Images
“We’ve asked the team to do this only once.”
Departing staff are being provided unusually beneficiant severance packages, together with full base pay by the tip of 2026, continued US health care protection by 12 months’s finish, and equity vesting by Aug. 15 — even for some staff who had not but reached commonplace vesting cliffs.
The company stated it expects to tackle $140 million to $150 million in restructuring-related prices, principally tied to severance, advantages, and associated prices, with most bills touchdown within the second quarter.
Cloudflare stated the restructuring must be considerably full by the tip of the third quarter as it pushes to reshape itself into a sooner, AI-first company.
