Cloudflare trims 20% of workforce as AI-first strategy takes shape

Cloudflare beat Q1 earnings estimates with revenue of $640 million and 25 cents per share, but shares fell after-hours as it announced a plan to cut more than 1,100 employees (about 20%) to pursue an agentic AI‑first operating model. The company also projected Q2 revenue of $664–665 million (roughly in line with expectations) and full-year 2026 revenue of $2.805–$2.813 billion with EPS of $1.19–$1.20, while Q1 posted a net loss of $22.93 million.