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News Devices May 9, 2026, 9:00 PM
Emerging

Cloudflare cuts 20% of its jobs due to AI, and its stock takes a 19% spill

Although Wall Street investors are usually amenable to job cuts, as they're generally seen as source of added short-term profit, this time around the market didn't react kindly at all, tossing Cloudflare's stock price down a cliff to the tune of a 19% drop in one day alone — nearly a 24% drop for the week. In a tweet , CEO Matthew Prince noted that "very few engineers or customer-facing sales people" are impacted by the layoffs, and that the firm wants to "continue to hire like crazy" for those roles. This piece sits on 1 source layers, but the real value is showing why the story should not be skimmed past too quickly.

Although Wall Street investors are usually amenable to job cuts, as they're generally seen as source of added short-term profit, this time around the market didn't react kindly at all, tossing Cloudflare's stock price down a cliff to the tune of a 19% drop in one day alone — nearly a 24% drop for the week. In a tweet , CEO Matthew Prince noted that "very few engineers or customer-facing sales people" are impacted by the layoffs, and that the firm wants to "continue to hire like crazy" for those roles. The signal is strong enough to deserve attention, but it still needs to be read as something developing rather than fully settled.

Quang Huy Devices and Digital Infrastructure Editor
Emerging The topic has initial corroboration, but the newsroom is still waiting on stronger confirmation.
Reference image for: Cloudflare cuts 20% of its jobs due to AI, and its stock takes a 19% spill
Reference image from Tom's Hardware. Tom's Hardware

Although Wall Street investors are usually amenable to job cuts, as they're generally seen as source of added short-term profit, this time around the market didn't react kindly at all, tossing Cloudflare's stock price down a cliff to the tune of a 19% drop in one day alone — nearly a 24% drop for the week. In a tweet , CEO Matthew Prince noted that "very few engineers or customer-facing sales people" are impacted by the layoffs, and that the firm wants to "continue to hire like crazy" for those roles. The firm expects to take a $140-$150 million charge associated with the job cuts, and the soon-departed also ought to receive equity in the company as of their professional passing. Tom's Hardware is the main source layer for now, and the rest should be read as a signal that is still widening. On the device side, the useful angle is whether a technical change actually alters feel, lifespan, or upgrade cost in real use.

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What is happening now

Although Wall Street investors are usually amenable to job cuts, as they're generally seen as source of added short-term profit, this time around the market didn't react kindly at all, tossing Cloudflare's stock price down a cliff to the tune of a 19% drop in one day alone — nearly a 24% drop for the week. Tom's Hardware form the main source layer behind the core facts in this piece.

Where the sources line up

Tom's Hardware is the main source layer for now, and the rest should be read as a signal that is still widening. In a tweet , CEO Matthew Prince noted that "very few engineers or customer-facing sales people" are impacted by the layoffs, and that the firm wants to "continue to hire like crazy" for those roles. Tom's Hardware form the main source layer behind the core facts in this piece.

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Patrick Tech Store Open the AI plans, tools, and software currently getting the push Jump straight into the store to see what Patrick Tech is pushing right now.

The details worth keeping

The firm expects to take a $140-$150 million charge associated with the job cuts, and the soon-departed also ought to receive equity in the company as of their professional passing. On the device side, the useful angle is whether a technical change actually alters feel, lifespan, or upgrade cost in real use.

Why this matters most

The signal is strong enough to deserve attention, but it still needs to be read as something developing rather than fully settled. With 1 source layers on the table, the part worth reading most closely is where firm facts meet the market's early reaction. The Q1 2026 results actually matched or beat both its revenue and Earnings Per Share (EPS) estimates — with a revenue of $639. 8 million (up 34% year-over-year) and an adjusted EPS of $0. 25 (beating the expectation of $0. 23).

What to watch next

The next readout is price, device coverage, and whether the change feels real once the hardware reaches users. Patrick Tech Media will keep checking rollout speed, user reaction, and how Tom's Hardware update the next pieces. From 1 early signals, the piece keeps 1 references that are useful for locking the main details in place.

Context Worth Keeping

Although Wall Street investors are usually amenable to job cuts, as they're generally seen as source of added short-term profit, this time around the market didn't react kindly at all, tossing Cloudflare's stock price down a cliff to the tune of a 19% drop in one day alone — nearly a 24% drop for the week. In a tweet , CEO Matthew Prince noted that "very few engineers or customer-facing sales people" are impacted by the layoffs, and that the firm wants to "continue to hire like crazy" for those roles. The firm expects to take a $140-$150 million charge associated with the job cuts, and the soon-departed also ought to receive equity in the company as of their professional passing. Tom's Hardware is the main source layer for now, and the rest should be read as a signal that is still widening. On the device side, the useful angle is whether a technical change actually alters feel, lifespan, or upgrade cost in real use. With devices, the real difference rarely lives on the spec sheet; it lives in whether daily use becomes better or more annoying. This is still a developing thread, so the useful part is knowing which source signals are hardening and which ones still need caution.

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