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Cloudflare to cut about 20% of its workforce

reuters.com

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Re: Cloudflare to cut about 20% of its workforce

#281
post #274

Earlier quoted context omitted.

Both of those are true assuming the lay offs come from different demographics. You lay off 1100 who are late in their career for younger people who will work more hours for less. You're building the future with new fresh people instead of the "dead weight"

Isn’t this illegal?

Making it illegal would be communism

Re: Cloudflare to cut about 20% of its workforce

#282
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…

Both of those are true assuming the lay offs come from different demographics. You lay off 1100 who are late in their career for younger people who will work more hours for less. You're building the future with new fresh people instead of the "dead weight"

there's no way 1100 interns are all going to be offered full time jobs

Re: Cloudflare to cut about 20% of its workforce

#283
They want to polish upcoming employees into getting more used to AI tools usage but they don't want keep burning cash on experienced ones. They have to establish more YOY growth. Looks like everybody has to justify in the market why they need AI agents more than employees.

Re: Cloudflare to cut about 20% of its workforce

#284

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

As the saying goes, "Macroeconomists have successfully predicted nine of the last five recessions."

Re: Cloudflare to cut about 20% of its workforce

#286

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…

Excess labor would only translate to increased revenue and new products if these companies had a product vision to begin with. But they don't, so people get sacked.

Re: Cloudflare to cut about 20% of its workforce

#288
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…

Both of those are true assuming the lay offs come from different demographics. You lay off 1100 who are late in their career for younger people who will work more hours for less. You're building the future with new fresh people instead of the "dead weight"

> You lay off 1100 who are late in their career for younger people who will work more hours for less.

Yet management always seems to miss the institutional knowledge, and experience, that also walks out the door laying off those 1,100 people 'late in their career'...

It's not possible to cram 25 years of experience into two.

Re: Cloudflare to cut about 20% of its workforce

#289
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…

Both of those are true assuming the lay offs come from different demographics. You lay off 1100 who are late in their career for younger people who will work more hours for less. You're building the future with new fresh people instead of the "dead weight"

>Both of those are true assuming the lay offs come from different demographics.

That's the point.

Re: Cloudflare to cut about 20% of its workforce

#290

> Cloudflare expects second-quarter revenue of $664 million to $665 million, obviously $2.5e9ish/yr is substantial in absolute terms ... but that's it? They intermediate half the internet and only capture $7m/day?

I think about investing in Cloudflare but that P/E ratio scares me off every time.
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