Cloudflare cuts over 20% of staff, Matthew Prince cites AI
Cloudflare just laid off over 20% of its staff, and CEO Matthew Prince said the layoffs were not tied to financial problems and reflected AI's growing impact on how Cloudflare operates.
Even though the company is growing fast, with more customers and strong revenue growth, Prince explained on X that AI is changing how things work behind the scenes.
He made it clear these cuts aren't about money problems, but about adapting to new tech.
Cloudflare AI handles monitoring, prompts cuts
Prince called this wave of layoffs "We haven't found another example in US business history of a public company growing at more than 30% that laid off more than 20% of its workforce. ", saying he's never seen anything like it before.
At Cloudflare, AI now handles routine monitoring and performance checks, so roles in middle management, marketing, and finance took a hit.
The company is still hiring interns though, especially those focused on "AI-native" skills.