Cloudflare previously announced plans to hire more than 1,000 interns to ‘ramp up’ AI use.
Cloudflare is cutting 20pc of its workforce after AI usage at the company grew 600pc in the last three months. The company said that it is cutting more than 1,100 employees, and expects restructuring costs to range up to $150m.
Shares at Cloudflare fell by more than 16pc in after-hours trading despite the company announcing a stronger than expected quarter, with first-quarter revenue growing 34pc year-on-year to nearly $640m. It expects second-quarter revenue to hit between $664m and $665m.
“We have to be intentional in how we architect our company for the agentic AI era”, an email sent to employees read.
“Today’s actions are not a cost-cutting exercise or an assessment of individuals’ performance – they are about Cloudflare defining how a world-class, high-growth company operates and creates value in the agentic AI era.”
