Cloudflare to reduce workforce by 1,100 people

Cloudflare (NET) announced Thursday actions designed to “further accelerate Cloudflare’s evolution to an agentic AI-first operating model.” As part of the plan, Clouflare expects to reduce its current workforce by approximately 1,100 people. “We currently estimate that we will incur charges of $140M-$150M in connection with the plan, consisting primarily of cash expenditures for notice period, severance payments, employee benefits and related costs of $105M-$110M and non-cash expenses related to vesting of share-based awards of $35M-$40M. We expect that the majority of the restructuring charges will be incurred in the second quarter of fiscal 2026, and that the execution of the plan will be substantially complete by the end of the third quarter of fiscal 2026. Our estimates are subject to a number of assumptions, and the actual costs incurred may differ materially from those initial estimates.”