Executive Summary
- Cloudflare is cutting about 20% of its workforce
- The company cites increased efficiency due to AI as the reason
- Departing employees will receive a generous severance package
The Buzz Score
The Internet’s Verdict: 60% Skeptical, 40% Understanding
Forum Reactions
Some people are criticizing Cloudflare’s move, saying it’s a sign of economic downturn rather than increased AI efficiency.
This is awkward. Exhibit A – September 2025 – ‘Help build the future’ – Cloudflare hires 1111 interns to ‘help build the future’. Exhibit B – May 2026 – ‘Building for the future’ – Cloudflare lays off 1100 people, about 20% of their workforce to ‘continue building the future’.
Others are praising the company’s generous severance package for departing employees.
The packages for departing employees will include the equivalent of their full base pay through the end of 2026. Healthcare coverage is different across the globe, and if you’re in the United States, we’ll continue to provide support through the end of the year.
Long-term Implications
Some experts believe that companies like Cloudflare should focus on long-term growth rather than short-term profits.
Alternatively, it could leverage this surplus labor for a period of moonshot R&D or paying down technical/process debts while they have the capacity and the profit to pay for it, which harms short-term share price relative to their competitors slashing jobs, while improving the company’s capabilities in the marketplace in the long-run.
Focus Keyword: Cloudflare Layoffs
