Mass Layoffs at Cloudflare, Over 1,000 Employees Affected

Mass Layoffs at Cloudflare, Over 1,000 Employees Affected

Jakarta – A new wave of layoffs in the technology industry has struck. This time, the American internet infrastructure and cybersecurity company, Cloudflare, has announced plans to cut approximately 20% of its global workforce amid the widespread adoption of artificial intelligence (AI).

The decision was announced by the company on Thursday, 7 May 2026. Cloudflare stated that the restructuring is being undertaken as the company begins to transform its operational methods to focus more on utilising AI across various business lines.

This step also illustrates how AI developments are beginning to alter workforce structures in major technology companies. It is not just about cost efficiency, but also about changes in working methods that are increasingly reliant on automation and AI-based technology.

Cloudflare revealed that it will eliminate more than 1,100 job positions worldwide. As of the end of 2025, the company had 5,156 full-time employees.

In addition, Cloudflare estimates it will incur restructuring costs of US$140 million to US$150 million, equivalent to Rp2.38 trillion to Rp2.55 trillion, in the second quarter of this year.

Despite the major efficiency measures, the company actually reported fairly strong financial performance in the first quarter. Cloudflare reported revenue of US$639.8 million, equivalent to Rp10.87 trillion, surpassing analyst expectations of US$621.9 million, or around Rp10.57 trillion.

Meanwhile, the company’s adjusted profit was recorded at 25 cents per share, higher than the market forecast of 23 cents per share.

However, the revenue projection for the second quarter is considered slightly below Wall Street expectations. Cloudflare estimates second-quarter revenue in the range of US$664 million to US$665 million, equivalent to Rp11.28 trillion to Rp11.30 trillion.

This figure is slightly below analysts’ estimates of US$665.3 million, or around Rp11.31 trillion.

Shortly after the announcement, Cloudflare’s shares, based in San Francisco, plunged around 19% in after-hours trading, despite its first-quarter financial results exceeding expectations.

Cloudflare CEO, Matthew Prince, along with one of the company’s co-founders, Michelle Zatlyn, explained that the company is entering a new operational era focused on AI.