Cloudflare cuts 20% of its jobs due to AI, and its stock takes a 19% spill

Cloudflare will cut 20% of its workforce, or about 1,100 jobs, as it sharply expands AI use.

The company said AI usage rose more than 600% in three months, reshaping its staffing plans.

Q1 2026 revenue and EPS beat expectations, but weak Q2 guidance sparked a 19% stock drop.

Cloudflare expects $140 million to $150 million in restructuring charges amid the layoffs.