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Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high
Cloudflare on Thursday joined a growing list of tech companies — including Meta, Microsoft, and Amazon — that have reported increased revenue alongside massive layoffs, attributing both trends to their use of AI.
Cloudflare, which provides internet security and performance services to millions of websites worldwide, announced it was cutting its workforce by approximately 20%, which equates to 1,100 people, it said as part of its first quarter 2026 earnings report on Thursday.
“We’ve never done something like this in Cloudflare’s history,” co-founder and CEO Matthew Prince said Thursday on the quarterly conference call, marking the first mass layoff in the company’s 16-year history. The company is cutting people from all teams and geographies except for salespeople who carry revenue quotas, CFO Thomas Seifert detailed on the call.
The news of the workforce cuts came as the company reported quarterly revenues of $639.8 million, a 34% year-over-year increase and the highest single quarter in the company’s history. However, this was coupled with a loss of $62.0 million compared with losing $53.2 million in the year-ago quarter.
That widening loss, even as revenue surged, highlights a familiar paradox in Cloudflare’s story: the company is growing fast but has yet to turn a consistent profit. But the loss was a smaller percentage of revenue, and the quarter was coupled with a lot of other positive indicators. For instance, Cloudflare reported that it had over $2.5 billion in “remaining performance obligations,” a year-over-year growth of 34%. RPO is the favorite metric these days to indicate revenue under contract but not yet delivered.
Hence, Prince insisted, the 20% cuts were not to reduce expenses but were strictly because of its use of AI.
“Today’s actions are not a cost-cutting exercise or an assessment of individuals’ performance; they are about Cloudflare defining how a world-class, high-growth company operates and creates value in the agentic AI era,” Prince and Cloudflare co-founder and president, Michelle Zatlyn, wrote in a related blog post about the layoffs.
Prince acknowledged on the call that even though Cloudflare has been selling AI-powered products, it was at first cautious about adopting AI itself.
“Internally, the tipping point was last November. At that point, across our teams, we began to see massive productivity gains, team members who were two, 10, even 100 times more productive than they had been before. It was like going from a manual to an electric screwdriver,” he described.
“Cloudflare’s usage of AI has increased by more than 600% in the last three months alone,” he added.
Prince highlighted the internal use of AI coding, saying that virtually the entire R&D team is now using the company’s own Workers platform — a tool that lets developers build and run software directly on Cloudflare’s global network — including its vibe coding feature. He also noted that 100% of the code produced this way and deployed for use in Cloudflare’s products is “now reviewed by autonomous AI agents.”
But it’s not just developers who are using AI internally, he said. “Employees across the company, from engineering to HR to finance to marketing, run thousands of AI agent sessions each day to get their work done.”
As a result, these highly productive, AI-powered employees require fewer support staff, he argued.
“A lot of the support people that provide support behind them, those roles aren’t going to be the roles that, you know, drive companies going forward,” Prince said.
Interestingly, Prince says that Cloudflare “will continue to hire people, and we’ll continue to invest in them because the people that are embracing these tools are just so much more productive than we’ve ever seen before. I would guess that in 2027 we’ll have more employees than we did at any point in 2026.”
Cloudflare said it ended its first quarter before layoffs with a headcount of about 5,500.
The pattern Prince described — deploying AI gains as justification for workforce reductions even during a period of strong revenue growth — is fast becoming a familiar script across the tech industry. Whether it reflects true structural transformation or acts as a convenient cover for cost discipline is a question that investors and employees will be wrestling with for some time to come.
When asked by an analyst on the call why the company needed to cut so deeply after such a good quarter, Prince said, “Just because you’re fit doesn’t mean you can’t get fitter.”
The Publicity Secretary of the African Democratic Congress, ADC, in Kwara State, Abubakar Kabir Basambo, has resigned from the party, accusing some of its leaders of hypocrisy, dishonesty and double standards.
Basambo announced his decision in a resignation letter dated October 23, 2026, addressed to the state party chairman through the Magaji Are 1 ward chairman and the chairman of Ilorin East Local Government Area.
He said his decision followed careful consideration of the party’s direction in the state ahead of the 2027 general elections.
In the letter, Basambo criticised some party leaders and members of the state executive committee, accusing them of failing to practise the values they publicly claim to uphold.
“This decision was not taken lightly. After deep reflection, I can no longer cope with the direction the party is going in the state.
“There is so much hypocrisy, lies, and double standards amongst some party leaders and State Excos who parade themselves as loyal leaders,” he stated.
The former spokesman also criticised the party’s governorship candidate, Zakari Mohammed, alleging that his arrogance, alongside the conduct of some members, had contributed to his decision to leave.
He warned that the alleged behaviour of some party leaders could prevent the ADC from growing if it was not addressed.
“If this situation does not change, it will surely bring the party down. This party cannot grow with hungry and hypocritical people parading themselves as leaders,” he wrote.
Despite his departure, Basambo said he had no regrets about leaving the party, describing the decision as the end of his political journey with the ADC.
He also expressed disappointment that he would no longer be working with his political leader, Abubakar Kannike, whom he said he had grown to respect over the past year.
Basambo described Kannike as a man of honour and sincerity, adding that his regard for him would remain unchanged despite his resignation.
He also wished the state chairman, secretary and woman leader success in their respective positions.
While thanking those who supported him during his time in the party, he said he had no apology to offer to those who disliked him.
Basambo further clarified his meeting with the governorship candidate of the Peoples Democratic Party, PDP, Bolakale Kawu, insisting that it was not intended to work against the ADC.
“For the purpose of clarity and to exonerate myself from any anti-party allegation, my meeting with Mallam Bolakale Kawu was purely an act of brotherhood and that of a committed member trying to canvas for the party,” he stated.
He added that some ADC leaders had also been involved in similar activities privately.
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From Super-Sub to World Cup Superstar! Kanyinsola Yusuf Wins FIFA Player of the Match as Flamingos Stun North Korea 3-1
Nigeria’s teenage sensation Kanyinsola Yusuf has emerged as one of the standout performers at the 2026 FIFA U-17 Women’s World Cup in Morocco after winning the Player of the Match award in the Flamingos’ sensational 3-1 victory over defending champions North Korea on Friday.
The prestigious individual recognition crowned an unforgettable afternoon for Yusuf, whose second-half goal helped Nigeria dismantle the tournament favourites and secure a place in the Round of 16.
Yusuf struck in the 56th minute to give Nigeria a commanding three-goal advantage, completing a remarkable attacking display against opponents who had scored 12 goals in their opening two group matches.
Oluwakemi Adegbuyi had opened the scoring in the 15th minute before Oluebube Umejiaku doubled Nigeria’s lead in the 38th minute, leaving the defending champions stunned at half-time.
North Korea pulled a goal back through Yu Jong Hyang’s 82nd-minute penalty, but the Flamingos held firm to record a famous victory.
For Yusuf, the individual honour represents another significant moment in a rapidly developing World Cup campaign.
The youngster had already made an impact in Nigeria’s opening 2-1 defeat to Poland, coming off the bench and helping spark a late fightback, before playing her part in the team’s recovery.
Her emergence adds another exciting dimension to coach Akeem Busari’s squad, which has transformed its fortunes after beginning the tournament with defeat.
Nigeria followed that setback with a 2-0 victory over Puerto Rico before producing Friday’s stunning performance against the reigning champions.
Yusuf’s award also means Nigerian players have claimed the Player of the Match prize in consecutive victories, following Adegbuyi’s recognition against Puerto Rico.
With the Flamingos now through to the knockout stage, Yusuf’s growing influence could prove crucial as Nigeria chase a historic first title.
From an impact substitute against Poland to a match-winning star against North Korea, Yusuf is rapidly making her name on the world stage.
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