NEXT STEP DESK

Cloudflare has announced plans to cut approximately 1,100 jobs even as the internet infrastructure company reported the highest quarterly revenue in its history. The company, which provides cybersecurity and web performance services for millions of websites globally, said the reductions would affect employees across most departments and regions. The layoffs were disclosed on May 7 in a joint blog post by Cloudflare Co-founder and Chief Executive Matthew Prince and Co-founder, President, and Chief Operating Officer Michelle Zatlyn.

In the statement, the executives said, “The way we work at Cloudflare has fundamentally changed. We don’t just build and sell AI tools and platforms. We are our own most demanding customer. Cloudflare’s usage of AI has increased by more than 600% in the last three months alone.” Cloudflare joins a growing number of technology companies reporting strong revenue growth while simultaneously reducing headcount and attributing the restructuring partly to advances in AI. Major firms including Meta, Microsoft, and Amazon have also linked organisational restructuring to increasing automation and AI-driven productivity gains.