Cloudflare to cut about 20% of its workforce, more than 1,100 jobs

San Francisco-based Cloudflare announced a restructuring that will reduce global headcount by about 20%. The cut will affect more than 1,100 positions and ranks as the largest single layoff round in the company's history. Chief executive Matthew Prince told staff in an internal note that the reductions are concentrated in specific product teams and enterprise sales units.

Cloudflare's most recent quarterly results show annual revenue growth running around 25%, although the company is still pushing for steady operating profitability. Investors had focused on the time-to-payoff of heavy engineering investments in AI Workers, the R2 object-storage service and the Zero Trust product line. The bulk of the layoffs are being processed with severance packages that include exit notice.

The move adds to the ongoing trend across cloud infrastructure following the downsizing waves at Microsoft, Meta and Salesforce in 2024 and 2025. The sector is trying to substitute AI-driven productivity gains for human staff. Cloudflare shares fell about 4% in extended trading after the announcement; analysts expect investment cadence to hold up over the short term, while hiring stays sharply constrained.