New Delhi, May 8 (IANS). American connectivity cloud company Cloudflare has announced to cut more than 1,100 jobs globally. The company is changing its operating structure in line with the increasing use of Artificial Intelligence (AI). This information has come to light in an internal memo sent by the company to its employees.
The company said internal use of AI has increased by more than 600 percent in the past three months, with employees across multiple departments including engineering, finance, human resources and marketing now increasingly using AI agents for everyday tasks.
Cloudflare said the move is not simply a cost-cutting or layoff based on poor performance, but part of a larger transformation across the organization in line with the ‘agentic AI era’.
“This decision is not a reflection of the talent or work of the departing employees. We are redesigning every internal process, team and role at the company,” the company said in the memo.
The company further said that all employees will be informed directly about how this restructuring will affect them. Notices will be sent to affected employees on both official and personal email addresses.
Cloudflare said the departing employees will be paid their full base salary through the end of 2026. Apart from this, health care benefits will continue till the end of the year in America and additional equity vesting benefits will also be given till August 15.
The company said that employees who have not yet completed their one-year vesting period will also be given proportionate equity vesting as part of the separation package.
According to the memo, the company wants to complete this restructuring process in a single phase, so as to avoid a situation of prolonged uncertainty and frequent layoffs.
Cloudflare said AI is rapidly changing the way the tech industry operates and business models. In such a situation, the company is redesigning its organizational structure to remain competitive.
According to the company, its transformation strategy aims to make the organization ‘faster and more innovative’ as it continues to invest in AI-based products and services.
–IANS
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