San Francisco tech giant Cloudflare plans more than 1,100 layoffs – San Francisco Chronicle
Cloudflare plans to cut more than 1,100 employees worldwide as the San Francisco technology company reorganizes around artificial intelligence, its founders told employees Thursday.
The company, which provides internet security, performance and cloud networking services, announced the layoffs the same day it reported first-quarter revenue of $639.8 million, up 34% from a year earlier.
In a message to employees published on Cloudflare’s blog, co-founders Matthew Prince and Michelle Zatlyn said the company’s use of AI had increased by more than 600% in the past three months.
Employees in engineering, human resources, finance and marketing are running “thousands of AI agent sessions each day,” they wrote. “That means we have to be intentional in how we architect our company for the agentic AI era.”
The company, founded in 2009, said the cuts were “not a cost-cutting exercise” or a reflection of individual performance, but part of a broader effort to rethink internal processes, teams and roles.
Cloudflare did not say how many Bay Area employees would be affected.
The company lists a San Francisco office at 101 Townsend St. and reported 5,156 full-time employees at the end of 2025, according to its most recent annual filing with the Securities and Exchange Commission.
A reduction of about 1,100 workers represents roughly one-fifth of head count.
Cloudflare said departing employees would receive base pay through the end of 2026. In the U.S., the company said it would continue healthcare support through the end of the year.
The company estimated it would incur $140 million to $150 million in charges tied to the restructuring, mostly for severance, benefits and related costs. Cloudflare said that most charges are expected in the second quarter and that the plan should be substantially complete by the end of the third quarter.
