genai / news / / TNW
Cloudflare beat Q1 earnings estimates, cut 1,100 employees because AI agents now do their work, and saw its stock fall 24 per cent.
Cloudflare explicitly attributed layoffs of 1,100 employees directly to AI agents replacing their roles.
KEY POINTS
- The internal use of AI at Cloudflare increased over 600 per cent within three months.
- Cloudflare's restructuring is not due to declining revenue—Q1 revenue grew 34 per cent year-over-year.
- Cloudflare's stock fell 24 per cent despite strong earnings, reflecting investor uncertainty about AI-driven restructuring.
- The company introduced an 'agentic AI-first operating model' making certain support roles permanently redundant.
COMPANIES
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