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Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high

Cloudflare on Thursday joined a growing list of tech companies — including Meta, Microsoft, and Amazon — that have reported increased revenue alongside massive layoffs, attributing both trends to their use of AI. Cloudflare, which provides internet security and performance services to millions of websites worldwide, announced it was cutting its workforce by approximately 20%, which equates to 1,100 people, it said as part of its first quarter 2026 earnings report on Thursday. This piece sits on 1 source layers, but the real value is showing why the story should not be skimmed past too quickly.

Cloudflare on Thursday joined a growing list of tech companies — including Meta, Microsoft, and Amazon — that have reported increased revenue alongside massive layoffs, attributing both trends to their use of AI. Cloudflare, which provides internet security and performance services to millions of websites worldwide, announced it was cutting its workforce by approximately 20%, which equates to 1,100 people, it said as part of its first quarter 2026 earnings report on Thursday. The signal is strong enough to deserve attention, but it still needs to be read as something developing rather than fully settled.

Emerging The topic has initial corroboration, but the newsroom is still waiting on stronger confirmation.
Reference image for: Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high
Reference image from TechCrunch AI. TechCrunch AI

Cloudflare on Thursday joined a growing list of tech companies — including Meta, Microsoft, and Amazon — that have reported increased revenue alongside massive layoffs, attributing both trends to their use of AI. Cloudflare, which provides internet security and performance services to millions of websites worldwide, announced it was cutting its workforce by approximately 20%, which equates to 1,100 people, it said as part of its first quarter 2026 earnings report on Thursday. “We’ve never done something like this in Cloudflare’s history,” co-founder and CEO Matthew Prince said Thursday on the quarterly conference call, marking the first mass layoff in the company’s 16-year history. TechCrunch AI is the main source layer for now, and the rest should be read as a signal that is still widening. The useful angle sits in the effect on user behavior, revenue flow, or how platforms compete for attention on screen.

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What is happening now

Cloudflare on Thursday joined a growing list of tech companies — including Meta, Microsoft, and Amazon — that have reported increased revenue alongside massive layoffs, attributing both trends to their use of AI. TechCrunch AI form the main source layer behind the core facts in this piece.

Where the sources line up

TechCrunch AI is the main source layer for now, and the rest should be read as a signal that is still widening. Cloudflare, which provides internet security and performance services to millions of websites worldwide, announced it was cutting its workforce by approximately 20%, which equates to 1,100 people, it said as part of its first quarter 2026 earnings report on Thursday. TechCrunch AI form the main source layer behind the core facts in this piece.

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The details worth keeping

“We’ve never done something like this in Cloudflare’s history,” co-founder and CEO Matthew Prince said Thursday on the quarterly conference call, marking the first mass layoff in the company’s 16-year history. The useful angle sits in the effect on user behavior, revenue flow, or how platforms compete for attention on screen.

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 company is cutting people from all teams and geographies except for salespeople who carry revenue quotas, CFO Thomas Seifert detailed on the call.

What to watch next

The real follow-up is whether the story turns into measurable user, creator, or revenue impact. Patrick Tech Media will keep checking rollout speed, user reaction, and how TechCrunch AI update the next pieces. From 2 early signals, the piece keeps 1 references that are useful for locking the main details in place.

Context Worth Keeping

Cloudflare on Thursday joined a growing list of tech companies — including Meta, Microsoft, and Amazon — that have reported increased revenue alongside massive layoffs, attributing both trends to their use of AI. Cloudflare, which provides internet security and performance services to millions of websites worldwide, announced it was cutting its workforce by approximately 20%, which equates to 1,100 people, it said as part of its first quarter 2026 earnings report on Thursday. “We’ve never done something like this in Cloudflare’s history,” co-founder and CEO Matthew Prince said Thursday on the quarterly conference call, marking the first mass layoff in the company’s 16-year history. TechCrunch AI is the main source layer for now, and the rest should be read as a signal that is still widening. The useful angle sits in the effect on user behavior, revenue flow, or how platforms compete for attention on screen. On the internet and business tech beat, the story usually matters because it shifts user behavior, revenue, or operations in a real way. 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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