Cloudflare announced cuts of about 1,100 roles as it reorganizes around what executives called the “agentic AI era,” according to a memo published on the company’s blog and reported by the San Francisco Chronicle. The company reported first-quarter revenue of $639.8 million, up 34% year over year, per the Chronicle, but shares fell sharply in after-hours trading (more than 14%), according to Business Insider and Barron’s. In the employee message, co-founders Matthew Prince and Michelle Zatlyn said the company has seen AI usage grow by more than 600% in the past three months, and that teams are running thousands of AI agent sessions daily, according to coverage by the Chronicle. The company estimated restructuring charges of $140 million to $150 million, with most charges expected in Q2 and the plan substantially complete by the end of Q3, per the Chronicle.
