Cloudflare Just Hit the AI-First Reset Button: Susquehanna Hikes Price Target to $200
Cloudflare said more than 1,100 workers will leave as executives cite a 600% jump in AI use and a new operating model.
- On Thursday, Chief Executive Matthew Prince and co-founder Michelle Zatlyn announced Cloudflare fired more than 1,100 employees, roughly 20% of its global workforce based in San Francisco, to rebuild for the 'agentic AI era.'
- Cloudflare's internal AI usage surged more than 600% in three months, with staff across engineering and finance running 'thousands of AI agent sessions each day,' prompting Prince and Zatlyn to claim workflows have fundamentally changed.
- Cloudflare expects to incur between $140 million and $150 million in restructuring charges while promising 'industry leading severance support' and full base pay through the end of 2026 for affected employees.
- Shares fell almost 19% in extended trading following the announcement, though the stock remains up more than 30% this year, with Cloudflare forecasting second-quarter revenue between $664 million and $665 million.
- Prince and Zatlyn described the cuts as long-term positioning rather than short-term panic, stating they do not want to reduce staff again for the foreseeable future even as the tech industry continues slashing jobs.
17 Articles
17 Articles
Cloudflare Just Hit the AI-First Reset Button: Susquehanna Hikes Price Target to $200
The post Cloudflare Just Hit the AI-First Reset Button: Susquehanna Hikes Price Target to $200 appeared first on 24/7 Wall St.. Quick Read Cloudflare (NET) received a $190-to-$200 price target raise from Susquehanna while maintaining Neutral, reflecting cautious optimism on AI-first restructuring gains. Cloudflare’s rich valuation and execution risk on the 1,100-person headcount cut mean investors should monitor Q2 results for margin expansio…
Cloudflare Cuts 20% of Workforce in AI-Driven Restructuring, Signaling a New Era of Automated Efficiency Over Human Labor
Internet infrastructure company Cloudflare announced plans to cut approximately 20% of its workforce, affecting about 1,100 employees, as the company shifts toward greater reliance on artificial intelligence. The layoffs were disclosed on May 8, 2026, as part of the company’s first-quarter earnings report. According to TechCrunch, the decision was attributed to increasing adoption of AI […]
Agentic AI Era: Cloudflare Fires 1,100 as Internal AI Usage Surges 600%
Cloudflare fired around 1,100 employees worldwide on Thursday from its headquarters in San Francisco, telling staff that the layoffs, which affect roughly 20% of its global workforce, are part of a plan to rebuild the company for what executives called the 'agentic AI era' rather than a short‑term financial squeeze. Cloudflare Fires have become a familiar phrase in the wider tech industry over the past two years, as major firms slash jobs while …
Cloudflare Announces More Than 1,100 Job Cuts Amid Growing AI-Driven Layoff Trend
Cloudflare has joined the growing list of organizations implementing workforce reductions as companies restructure around the rapid adoption of AI tools. In a blog post on Thursday, May 7, 2026, the global cloud infrastructure and cybersecurity company announced plans to cut more than 1,100 jobs globally. Cloudflare Executives Detail Layoffs As AI Use Soars Across Organization In the blog post, Cloudflare CEO Matthew Prince and co-founder Michel…
Cloudflare Cuts 20% Of Workforce While Reporting Record Revenue Growth
Cloudflare announced Thursday that it will reduce its workforce by approximately 20%, or about 1,100 employees, as the company said artificial intelligence tools are significantly increasing employee productivity across its operations. The layoffs were disclosed alongside Cloudflare’s first-quarter 2026 earnings results, which showed record quarterly revenue growth despite continuing net losses. “This is the first mass layoff in Cloudflare’s 16-…
Coverage Details
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
