Cloudflare Cuts 1,100 Employees (20% Workforce) Despite Record Revenue Growth

On May 7, Cloudflare announced its first-ever workforce reduction of 1,100 employees—approximately 20% of staff—despite Q1 revenue reaching a record $640 million, a 34% increase year-over-year. The company cited a 600% surge in internal AI usage over three months. Year-to-date tech layoffs have reached 286 incidents affecting 128,000 workers, averaging 1,002 job losses per day. Oracle eliminated 25,254 positions, Amazon cut approximately 30,000 over five months, and Microsoft saw roughly 125,000 voluntary departures—trends indicating workforce-to-AI-infrastructure reallocation.