THIS afternoon, Cloudflare announced in an internal email that it has decided to reduce its global workforce by more than 1,100 employees. The message explains that the way the company works has fundamentally changed, with AI usage rising by more than 600% in the last three months and thousands of AI agent sessions per day across teams.
It stresses that the decision is not a reflection of individual performance but a reimagining of internal processes, teams, and roles to operate in an agentic AI era, and it commits to treating departing staff with empathy and offering industry-leading severance packages, including base pay through the end of 2026 and ongoing healthcare support where applicable.
The note also states that departing equity will vest through August, with waivers on one-year cliffs for prorated equity, and that communications will be sent directly to affected employees within the hour. Cloudflare emphasises its mission to help build a better Internet and explains that the reshaped organisation is intended to be faster and more innovative as it continues building the future. The company also indicates it will discuss the announcements further during an earnings conference call at 2 PM PT.