{
    "success": true,
    "data": {
        "id": 1727713,
        "msgid": "cloudflare-lays-off-1-100-employees-amid-ai-adoption-1778303019",
        "date": "2026-05-09 09:00:00",
        "title": "Cloudflare Lays Off 1,100 Employees Amid AI Adoption",
        "author": "Yudha Pratomo",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Business",
        "summary": "Cloudflare, a leading internet infrastructure and cybersecurity firm, has announced the layoff of approximately 20% of its global workforce, affecting over 1,100 employees, as part of an operational restructuring driven by the rapid adoption of artificial intelligence. The company anticipates restructuring costs of $140 million to $150 million in the second quarter of 2026, while projecting revenues slightly below analyst expectations at $664 million to $665 million. This move reflects broader industry trends, with economists estimating that AI has led to the loss of 5,000 to 10,000 jobs monthly across sectors in 2025, highlighting the transformative yet disruptive impact of AI on employment.",
        "content": "<p>Cloudflare, an internet infrastructure and cybersecurity company, has\nannounced the termination of employment for around 20% of its global\nworkforce.<\/p>\n<p>This decision comes as part of an operational restructuring due to\nthe adoption of artificial intelligence (AI). The layoffs will impact\nmore than 1,100 employees. According to the company\u2019s report, Cloudflare\nhad 5,156 permanent employees as of the end of 2025.<\/p>\n<p>Cloudflare stated that these changes are being made as the company\nreorganises its internal ways of working amid the rapidly increasing use\nof AI.<\/p>\n<p>Cloudflare CEO Matthew Prince and co-founder Michelle Zatlyn said the\ncompany is reimagining every team and work function to operate in the\nera of \u201cAI agents\u201d.<\/p>\n<p>Cloudflare revealed that internal AI usage has increased more than\nsixfold in the last three months. This is said to be driving major\nchanges in team operations.<\/p>\n<p>The San Francisco-based company estimates that restructuring and\nlayoff costs will reach $140 million to $150 million in the second\nquarter of 2026.<\/p>\n<p>On the other hand, Cloudflare forecasts second-quarter revenue in the\nrange of $664 million to $665 million, slightly below analysts\u2019\nexpectations of $665.3 million.<\/p>\n<p>Cloudflare\u2019s shares fell around 19% in after-hours trading, despite\nthe company reporting first-quarter performance that exceeded market\nforecasts.<\/p>\n<p>In the first quarter of 2026, Cloudflare recorded revenue of $639.8\nmillion.<\/p>\n<p>Meanwhile, Goldman Sachs economists estimate that AI has caused the\nloss of around 5,000 to 10,000 jobs per month throughout 2025 across\nvarious industries.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/cloudflare-lays-off-1-100-employees-amid-ai-adoption-1778303019",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}