Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high

techcrunch.com May 9, 2026

Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high

Curated by Shubham · TechCapsules · May 9, 2026

AI-summarised brief · reviewed before publication

Cloudflare announced a 20% workforce reduction, approximately 1,100 jobs, due to AI implementation, despite reporting a record high revenue of $639.8 million, a 34% year-over-year increase. The company attributed the layoffs to AI's role in redefining its operations, not cost-cutting. Cloudflare's loss widened to $62.0 million, but the quarter showed positive indicators, including a 34% growth in remaining performance obligations.

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