Cloudflare cuts about 1,100 jobs as Matthew Prince cites AI
Cloudflare just cut about 1,100 jobs, roughly 20% of its workforce, and CEO Matthew Prince points to AI as the reason.
He explained that AI is replacing "measurer" roles like middle management, finance, and legal, which made up most of the positions affected.
Prince believes AI tools can assess company performance faster and more accurately than humans, making these jobs less necessary.
Cloudflare says engineering and sales secure
Prince reassured that "builders" (engineering) and "sellers" (sales) roles are still secure and the company is hiring in those areas.
Despite the layoffs, Cloudflare reported record revenue growth.
This move reflects a bigger trend across tech: over 49,000 US jobs have been lost to AI-related cuts this year alone.
The rise of automation has many companies rethinking who they need on their teams.