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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

#631
Gosh...

The job market is already brutal for many candidates, especially people who aren’t social media personalities and don’t have names like Cloudflare, Meta, Amazon, or Google on their CVs. Some people will end up homeless...

At least having Cloudflare on their resume will likely help many of these people land new opportunities, so I wouldn’t be too worried about their long-term prospects...

What I don’t fully understand is why a company like Cloudflare decides to let experienced people go under the umbrella of “reorganisation.” Couldn’t some of them be given the opportunity to adapt to new priorities or ways of working?

What exactly is so fundamentally difficult in 2026 that someone with years of experience can’t learn?

Of course, large organisations sometimes develop dysfunctional habits. I’m not saying that’s necessarily the case here, but common examples include:

1. Problems that a motivated engineer could solve in minutes instead turn into meetings scheduled a week later, followed by more meetings.

2. People are becoming so process-oriented or conservative that they reject new approaches by default (Not even trying things out, and I don't mean migrating to a new fancy framework)

3. Engineers losing touch with product thinking and customer impact.

And if the explanation is cost-cutting, it’s fair to ask where companies choose to spend money elsewhere, e.g. unlimited LLM token usage with little accountability, extravagant off-sites, flying thousands of employees to expensive locations, etc.

Finally, why do they keep hundreds of job openings on their careers page? Are those false job descriptions wasting candidates' time?

Re: Cloudflare to cut about 20% of its workforce

#632

Gosh... The job market is already brutal for many candidates, especially people who aren’t social media personalities and don’t have names like Cloudflare, Meta, Amazon, or Google on their CVs. Some people will end up homeless... At least having Cloudflare on their resume will likely help many of these people land new opportunities, so I wouldn’t be too worried about their long-term prospects... What I don’t fully un…

> Couldn’t some of them be given the opportunity to adapt to new priorities or ways of working?

They could. You should be asking whether they want to or not.

Re: Cloudflare to cut about 20% of its workforce

#633

Wow, and I had thought they would be one of the winners in the AI era. A lot of SaaS's can be recreated with an agent and some tokens, but I thought the more infra-y companies would be the beneficiaries. I've vibe coded a few Cloudflare Workers and thought it was a great experience. And Claude knew how to use wrangler to do a lot itself.

From the announcement it doesn’t seem like they’re losing, just that they’re cutting off their employees winnings.

Re: Cloudflare to cut about 20% of its workforce

#634
post #625
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…

Why do we need to complicate here? cloudFlare is not making any profit. They are losing money. The board probably wants profit now (they predict less growth) so the management needs to cut the costs. This AI story is a just an excuse. If there is not AI they will say “high gas prices”. Or “inflation”. Or whatever … It is true that the companies like Meta, Oracle and Microsoft are laying off due to AI but because they…

I'll just point out that this is exactly the point in the corporate character arc where every company before turns evil.

I never liked the idea of every web site in the world using CloudFlare, but I like it even less now that they're struggling.

Re: Cloudflare to cut about 20% of its workforce

#635

There was an recent article on X with an interesting take - it could be that companies are doing layoffs not because AI is making them more productive but because it hasn't . Their costs have gone up paying for expensive AI but haven't seen any revenue benefits to offset it. Article https://x.com/championswimmer/status/2051807284691612099

[deleted]

Re: Cloudflare to cut about 20% of its workforce

#636
post #69

"We are our own most demanding customer. Cloudflare’s usage of AI has increased by more than 600% in the last three months alone. Employees across the company from engineering to HR to finance to marketing run thousands of AI agent sessions each day to get their work done. 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 cu…

I don't read this as employing 20% was twiddling their thumbs and sitting around. If it means anything beyond economic issues, I read the implication as their LLM expenses have gone threw the roof and with the choice of cutting LLM use or cutting headcount, well we see what mattered more to them.

Unfortunately I think we’ll see more and more of this as companies continue to encourage their employees to use LLMs everywhere and for everything. Eventually they will have to come to terms with the cost of such mandates, and it’s either ask your employees to “use AI less,” or it’s let some percentage go and continue to let the rest burn tokens.

Re: Cloudflare to cut about 20% of its workforce

#637
post #241

Earlier quoted context omitted.

Rings true because now teams end up building a lot of things that may or may not have alignment to customer/business needs. The slow part has always been figuring out exactly what the customer/business actually needs, not the coding. Now teams are throwing money at tokens without solving the "who's buying this?" part appropriately and end up just building excess. All judgement seems to have gone out the window.

At my last job, within our org, the director had 3 staff engineers building the same, but competing AI tool. At the last all hands other teams announced their own similar AI engineer productivity tools. I low-key regret now sticking around long enough to get a layoff package.

This rings a bell.

Now that you can just throw tokens at it, it seems like actually thinking about what is useful and productive is no longer a practical skill (it still is, just no one in leadership nor product wants to practice discipline any more).

I don't know what to say about it except that it legitimately feels like some folks have just shut off their inquisitiveness and willingness to investigate and think before acting.

Now it's act, waste tokens and time, only to learn that the result of the action was obviously bad from the start because of some real-world human nature that we now no longer stop to try to understand first before applying a technical solution.

Re: Cloudflare to cut about 20% of its workforce

#638
post #18

> The packages for departing employees will include the equivalent of their full base pay through the end of 2026. Healthcare coverage is different across the globe, and if you’re in the United States, we’ll continue to provide support through the end of the year. We are also vesting equity for departing team members through August 15th, so they receive stock beyond their departure date. And, if departing team member…

Damn. I got two weeks notice and then got shown the door with nothing. And now I get to compete with all these people who are going to be so much less stressed

Proper layoffs require at least 60 days of notice or 60 days of pay. Maybe you weren't part of a proper layoff, but if you think you were, check out the WARN act.

Re: Cloudflare to cut about 20% of its workforce

#639
This seems kind of a critical point in time. I consider Cloudflare to be one of the more serious engineering organizations based on the quality of the products. Assuming they are not lying, them cutting 20% workforce citing AI signals there is actual teeth to this AI optimism.

On the other hand "only" 20% for the foreseeable feature is good news? It means there is ceiling to productivity that AI offers.

Or perhaps I am giving Matthew Prince too much credit here, and this is just an opportunistic cost cutting measure.

Re: Cloudflare to cut about 20% of its workforce

#640
post #69

"We are our own most demanding customer. Cloudflare’s usage of AI has increased by more than 600% in the last three months alone. Employees across the company from engineering to HR to finance to marketing run thousands of AI agent sessions each day to get their work done. 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 cu…

I believe they meant that the cost of using an LLM is extremely high! There are reports of people spending USD $500~1000 a day! There's the possibility of decoupling of effort and output! Which causes an illusion of work.
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