Bloodbath at Silicon Valley giant as CEO’s savage memo to staff emerges

Cloudflare is undergoing a significant restructuring, resulting in over 1,100 job cuts worldwide. The San Francisco-based tech company has experienced a 34% increase in first-quarter revenue, reaching $639.8 million compared to the previous year.

The internal use of artificial intelligence at Cloudflare has surged by over 600% in just three months, as reported by The San Francisco Chronicle.

Co-founders Matthew Prince and Michelle Zatlyn emphasized the company’s shift towards an AI-driven approach, with employees across various departments engaging in thousands of AI agent sessions daily.

The restructuring at Cloudflare aims to reimagine every internal process, team, and role within the organization, rather than being a cost-cutting measure or a reflection of employee performance.

The company plans to offer generous severance packages to departing employees, including full base pay through 2026, continued US health care coverage, and equity vesting extensions.

Cloudflare anticipates incurring restructuring charges of $140 million to $150 million, primarily related to severance, benefits, and associated costs, with most expenses expected in the second quarter.

The restructuring is expected to be largely completed by the end of the third quarter as Cloudflare transitions into a faster, AI-centric organization.

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