Cloudflare is eliminating more than 1,100 positions globally as the company restructures for the agentic AI era. The internet infrastructure provider reports its internal AI usage surged 600% in the last three months, with employees running thousands of AI agent sessions daily across departments. This workforce reduction represents a fundamental shift in how the company operates and creates value.

Departing employees receive substantial compensation packages including full base pay through the end of 2026, continued healthcare coverage, and accelerated equity vesting. Cloudflare leadership emphasizes these cuts are not about cost savings but about reimagining organizational structures for an AI-driven future. The company maintains this is a necessary evolution, not a reflection of individual performance.

The restructuring positions Cloudflare as a digitally native company prepared for the next phase of internet development. By embracing AI technology internally, the company aims to deliver enhanced value to customers while maintaining its mission to build a better internet. Cloudflare's connectivity cloud already protects networks, accelerates web applications, and provides security against DDoS attacks globally.