NEW DELHI — Cloudflare plans to cut more than 1,100 jobs worldwide as the U.S.-based connectivity cloud company restructures its operations around the growing use of artificial intelligence.
The company announced the layoffs in an internal memo to employees, describing the move as part of a broader organizational overhaul for the “agentic AI era,” rather than a traditional cost-cutting measure or performance-based layoff program.
Cloudflare said its internal use of AI has increased by more than 600% over the past three months. Employees in engineering, finance, human resources and marketing are increasingly using AI agents to handle daily tasks, according to the company.
“This decision is not a reflection of the individual work or talent of those leaving us,” the company said in the memo. “We are reimagining every internal process, team and role across the company.”
Cloudflare said employees would be notified directly about how the restructuring affects them. Notices are being sent to both official and personal email addresses for impacted workers.
The company said severance packages will include full base pay through the end of 2026, continued health care support in the U.S. through the end of the year and additional equity vesting benefits through Aug. 15.
Employees who have not completed their one-year vesting cliff will receive prorated equity vesting as part of the separation package, according to the memo.
Cloudflare said it plans to complete the restructuring in a single phase to avoid prolonged uncertainty and repeated rounds of layoffs.
The company said it is reshaping its organization to stay competitive as AI changes business workflows and operating models across the technology industry. Cloudflare said the strategy is aimed at making the company faster and more innovative as it continues investing in AI-driven products and services. (Source: IANS)
