IDGI. How is a company that owns a bunch of infrastructure you almost have to use to put your service on the internet not more profitable such that they have to do layoffs?
Cloudflare to cut about 20% of its workforce
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Re: Cloudflare to cut about 20% of its workforce
#142Cloudflare's stock price has been disconnected from reality for a while.. the only one that's wilder is Palantir which at least has revenue growth numbers that are very impressive.. meanwhile Cloudflare's enterprise value vs next 12 months revenue and revenue growth just don't justify this completely out of whack market valuation. I feel bad that the company has to try and sustainably justify that. It's incredible to watch the velocity of their launches. But I suppose the reality is most of them are just not selling
Re: Cloudflare to cut about 20% of its workforce
#143That's 2 major layoffs this week (Coinbase being the other). Is there an underlying common reason for this? And is it indeed AI-driven productivity as both companies claim?
AI productivity is a lie. It’s AI spending because the revenue hasn’t gone up.
Re: Cloudflare to cut about 20% of its workforce
#144Why are they laying off anyone when you got 500 million plus in pure profit. The tax system needs to be reworked to not incentivize layoffs. Major taxes should happen to support the well fair system in order to support people laid off. This is a stupid system we live in.
Re: Cloudflare to cut about 20% of its workforce
#145This 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…
In my experience, companies never value transparency. And it's doubly true for companies that boast about transparency. Obviously, it's within their authority to cut head count, but they've also obviously made some kind of major strategic shift either to cut costs or abandon some lines of business and they are not being upfront about it at all. The stock is up 111% over 12 months. They don't seem to be in any danger…
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Re: Cloudflare to cut about 20% of its workforce
#146This 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…
The skeptical assumption is they need to pay for the AI bills, not that the AI use is actually providing the promises CEOs are making.
It is May 2026, there is no difference between AI and non-AI bills.
Most (if not all) major enterprises in the US have gone through at least one round of org-wide subscription renewals (eg: Atlassian product packs, Microsoft product packs, etc) where 1) price increases were mandatory, 2) AI features could not be opted out of, and 3) AI feature usage was strongly encouraged from C-suite to client-facing biz staff to telephone agent support staff.
I repeat, we are passed the point where AI bills and non-AI bills can be differentiated. We are all paying for these features driven by tokens whether we like it or not, whether the cost-benefit analysis makes sense, and whether they are even being used.
And we are all passing the costs onto everyone lower on the totem pole, from insurance groups to bank groups to national grocery chains to consultant conglomerates to minimum wage front-line staff to below-minimum-wage gig workers.
And this is why there are layoffs, every price increase from the top down causes further price increases to cascade down.
Re: Cloudflare to cut about 20% of its workforce
#147When you announce 639m USD revenue for q1 Then lay off a thousand people because you love the smell of your ai farts.
Yes, their revenue was $639m but their expenses were $702m.
It doesn't matter how much revenue you have if you are spending more than that.
Re: Cloudflare to cut about 20% of its workforce
#148This 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…
The skeptical assumption is they need to pay for the AI bills, not that the AI use is actually providing the promises CEOs are making.
The reasonable assumption is they believe a recession is coming.
Re: Cloudflare to cut about 20% of its workforce
#149Earlier quoted context omitted.
Maybe I've become cynical and jaded, because when I saw the title I immediately thought to myself "oh, Cloudflare's announcing a layoff."
The corporate speak isn't working if people instantly know what it means!
It's like slurs; an ever-moving target.
Re: Cloudflare to cut about 20% of its workforce
#150This 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…
Are they taking the piss by hiring and firing the same number as their public DNS IP ?