Cloudflare cuts 1,100 jobs amid AI-driven restructuring despite 34% revenue growth

Cloudflare is laying off over 1,100 employees, about one-fifth of its workforce, as part of a major restructuring to become an AI-first company. The company reported a 34% revenue increase to $639.8 million in Q1 but said the cuts are not about cost-cutting or performance, rather a strategic reset. Founders highlighted a 600% surge in internal AI use, prompting a redesign of processes and roles. Generous severance packages are offered, and the restructuring is expected to complete by Q3 2026.