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Cloudflare to cut about 20% of its workforce

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Re: Cloudflare to cut about 20% of its workforce

#251

Earlier quoted context omitted.

*a recession did infact come*

I've been told that a recession is coming since 2009, when I started investing - there has never been one since then despite all the dire predictions - therefore, my investments are safe

The government is very decided on not letting one happen, or hiding any minor recession. They will throw money at the problem as long as they can.

Re: Cloudflare to cut about 20% of its workforce

#253

Earlier quoted context omitted.

Are they taking the piss by hiring and firing the same number as their public DNS IP ?

The "as many as 1,111" number was: > The number of our intern goal, a nod to our 1.1.1.1 public DNS resolver, is intentional. But like the sibling comment says, "over 1,100" does not reference any of their resolver IPs anyways. In all likelihood, they hired fewer than the maximum of 1,111 interns and they are probably chopping slightly more than that here (max vs min).

Also it's funnier to make jokes about hiring people, than it is about firing them.

Re: Cloudflare to cut about 20% of its workforce

#254

This really sucks. I loved this job. I'm an EM and I was trying to hire more people because we're so busy with everything we needed to do. My teams products are something like 95% profit. Really going to miss my team, they were wonderful to work with. Secretly hoping they'll have to rehire. I refuse to believe it was about AI. Coming from the inside, the bottleneck was never code. Seeing who is being laid off, especi…

> Seeing who is being laid off, especially on my team, it's the people who make things run. How did the company decide who to lay off? They didn't even ask EMs?

This style of layoff seems far more common post-2020 than targeted "restructuring". I've lived through a few layoffs now, survived most of them, but each time and at each company I've gotten by on an apparent roll of the dice and nothing more. Every time I've seen some truly important ICs get let go, their EMs having no input.

Re: Cloudflare to cut about 20% of its workforce

#255

I'm going to start calling these "Canary" moments. Assuming we take everything at face value for these sorts of cuts, it creates the following scenario: A company finds itself with surplus labor capacity due to the efficiencies in AI while also posting substantial profit or revenue growth. The company could downsize the workforce to capitalize on short-term efficiencies and increase margins, though this will come at…

"A company finds itself with surplus labor capacity due to the efficiencies in AI"

That is one possible interpretation, though I don't think it's supported by any facts.

A competing explanation: companies are spending a ton of money on AI in search of efficiency, and then laying people off in order to offset these investments. That's certainly what's been happening at Microsoft, Oracle, Meta, etc.

Re: Cloudflare to cut about 20% of its workforce

#256

The AI argument doesn't make sense to me for layoffs. If AI is making the company more productive then there's an incredible opportunity to use the existing workforce to tackle the massive backlog of important work. A big layoff only makes sense if there is no more useful work to do or you're killing products.

It's AI but not in the way you think.

AI usage is getting expensive since Anthropic et al are turning the screws, and that money has to come from somewhere. Reducing AI usage is blasphemy of course, so cutting headcount is the only path forward.

Re: Cloudflare to cut about 20% of its workforce

#257
post #135

This is awkward. Exhibit A - September 2025 - "Help build the future" - Cloudflare hires 1111 interns to "help build the future" [ https://blog.cloudflare.com/cloudflare-1111-intern-program/ ] Exhibit B - May 2026 - "Building for the future" - Cloudflare lays off 1100 people, about 20% of their workforce to "continue building the future" [ https://blog.cloudflare.com/building-for-the-future/ ] I'll finish on this quo…

i saw this ALL the time at past employers. Employers higher all kinds of interns who eagerly get truck loads of work done and build great connections. and 2 years later the company is getting sold off, out of business, or mass lay offs all over the place. what's the point of highering all those interns in the first place?? geez.

Re: Cloudflare to cut about 20% of its workforce

#258
post #135

This is awkward. Exhibit A - September 2025 - "Help build the future" - Cloudflare hires 1111 interns to "help build the future" [ https://blog.cloudflare.com/cloudflare-1111-intern-program/ ] Exhibit B - May 2026 - "Building for the future" - Cloudflare lays off 1100 people, about 20% of their workforce to "continue building the future" [ https://blog.cloudflare.com/building-for-the-future/ ] I'll finish on this quo…

i saw this ALL the time at past employers. Employers higher all kinds of interns who eagerly get truck loads of work done and build great connections. and 2 years later the company is getting sold off, out of business, or mass lay offs all over the place. what's the point of highering all those interns in the first place?? geez.

>mass lay offs all over the place. what's the point of highering all those interns in the first place?? geez.

If you don't hire them, someone else can hire them. Out of 1,000 you hire, one could be an "attention all you need" research paper writer, who could set up the next stage of innovation which you'll completely miss if you do not get anyone.

Initially, you’ve got to starve out the market of talent to stop competition from growing by nipping the threat in the bud.

Future can pay for all of this if you succeed.

Re: Cloudflare to cut about 20% of its workforce

#259

Companies like cloudflare operate at a very critical spot as of today. They manage the end points where TLS terminates for most of the internet traffic which means that they have access to all the information flowing through them in clear. When a company is so much motivated by the profits then it would not be too far away when they start selling all this information. With this much centralized control, they can easi…

> When a company is so much motivated by the profits That is what a company is for.

I think this is the reason why the detailed definition of companies varies, the motivation and regulation on a company varies too. Absent the regulations, financial institutions would have run off with the money by now

Re: Cloudflare to cut about 20% of its workforce

#260
post #112

Earlier quoted context omitted.

" Secretly hoping they'll have to rehire." They will just expect a lower wage rate. There's some tacit collusion going on here.. they are using LLMs as a vehicle to address the price that comes with the true shortage of software engineers. You seriously dont think they talk about this behind closed doors? of course they do.

Absolutely. My hope is selfish - the market is awful

Do the world a favor and take your institutional knowledge out the door to enjoy greener pastures.
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