Cloudflare cuts 20% of staff to focus on AI-driven operations, incurring $140M-$150M in restructuring costs.

Cloudflare is laying off 1,100 employees, about 20% of its workforce, to accelerate its shift to an AI-first operating model aimed at boosting efficiency and redefining internal processes. This strategic move is not just cost-cutting but a transformation to create value in the AI era, with AI use at Cloudflare surging 600% in three months. The layoffs will lead to $140M-$150M in restructuring charges, mostly in Q2 2026. Meanwhile, Upwork is cutting 24% of its workforce after missing revenue targets, and IREN secured a $3.4 billion AI cloud deal with Nvidia, expanding its AI cloud infrastructure in Europe.