New Delhi, May 8 -- Cloudflare on Thursday said it will cut about 20% of its global workforce, or more than 1,100 employees, as the company restructures operations to increase the use of artificial intelligence tools across the business.

The company said the layoffs are tied to what it described as an "agentic AI-first operating model," and not to employee performance or short-term cost-cutting efforts. The announcement was made in a message to employees from co-founders and chief executives Matthew Prince and Michelle Zatlyn, according to Reuters.

Cloudflare had 5,156 full-time employees at the end of 2025, according to company filings. The company expects to incur restructuring charges of about $140 million to $150 million, with most ...