Cloudflare CEO Matthew Prince laid off more than 20 percent of the workforce despite record revenue, claiming AI is replacing middle management and compliance roles. But the company offers no hard evidence for that. Falling margins and a headcount that surged 40 percent in two years point to a classic efficiency program wrapped in AI branding.

Cloudflare cuts 1,100 jobs, roughly 20% of staff, as internal AI usage surged 600% in three months, even as Q1 2026 revenue hit a record $639.8 million.

Prince said in a recent Wall Street Journal op-ed that the company would cut “measurers” while prioritizing hiring of “builders” and “sellers.”

Cloudflare CEO Matthew Prince laid off more than 20 percent of the workforce despite record revenue, claiming AI is replacing middle management and compliance roles. But the…