"That means we have to be intentional in how we architect our company for the agentic AI era in order to supercharge the value we deliver to our customers and to honor our mission to help build a better Internet for everyone, everywhere,"
"Today's actions are not a cost-cutting exercise or an assessment of individuals' performance; they are about Cloudflare defining how a world-class, high-growth company operates and creates value in the agentic AI era."
"By taking decisive action now, we provide immediate clarity to those departing and protect the stability of the team that remains. We are making these changes now because making smaller, repeated cuts or dragging a reorganization out over multiple quarters creates prolonged emotional uncertainty for employees and stalls our ability to build."
"Departing employees will receive severance equivalent to their full base salary through the end of 2026. The company noted that US workers will continue to receive healthcare coverage through December 31. In addition, Cloudflare said it will accelerate equity vesting for affected staff through August 15, allowing them to continue accumulating shares after their departure."
Cloudflare announced layoffs affecting more than 1,100 employees worldwide as part of an AI-driven restructuring plan. The company said AI usage increased by over 600% in the prior three months, with AI agents used across HR, marketing, finance, and engineering. Leadership stated the changes are intended to architect the company for the agentic AI era to increase customer value and support its mission. The company said the actions are not a judgment of individual performance or a cost-cutting exercise. Departing employees receive severance equal to full base salary through the end of 2026, and US workers keep healthcare coverage through December 31. Equity vesting is accelerated through August 15, and the one-year vesting cliff is waived for employees not yet eligible, with pro-rated vesting provided through August.
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