Cloudflare cuts 20% workforce amid AI transformation. The internet infrastructure and cybersecurity company plans to eliminate over 1,100 jobs globally as it restructures around artificial intelligence adoption. Despite beating first-quarter revenue expectations at $639.8 million versus analyst estimates of $621.9 million, the company projected second-quarter revenue of $664 million to $665 million, slightly below Wall Street's $665.3 million forecast. Cloudflare expects restructuring charges between $140 million and $150 million in Q2. The San Francisco-based firm's internal AI usage surged sixfold in three months, driving operational redesign across teams. CEO Matthew Prince emphasized the shift toward an agentic AI-first operating model. Stock dropped 19 percent in extended trading despite stronger-than-expected quarterly results, though shares remain up 30.3 percent year-to-date.
