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Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high

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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.

Image Credits: SEC filings; Cloudflare press releases /

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.”

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Party Deregistration: ADC youth wing petitions NJC, demands Lifu’s removal

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The National Youth Wing of the opposition African Democratic Congress, ADC) has written a formal petition against Justice Peter Odo Lifu, demanding his removal “from any and all adjudicatory matters, reviews, or decision-making roles concerning the ADC.”

The petition, dated June 18, 2026, was addressed to the Executive Secretary, National Judicial Council (NJC), and signed by the ADC’s national youth leader, Comrade Balarabe Rufai. 

While reading the content of the petition to media in front of the ADC National Secretariat, Comrade Rufai, who was represented by Comrade Ibrahim Garba Wala, alleged that there were attempts to prevent them from submitting the petition at the NJC. 

According to him, all roads leading to the NJC, on Thursday were barricaded by heavily armed security agents; hence, the need to present the petition to the public. 

The petition reads, “We demand the immediate, total removal of Hon. Justice Peter Odo Lifu from any and all adjudicatory matters, reviews, or decision-making roles concerning the ADC. Furthermore, given his pattern of flagrant judicial rascality, we explicitly demand that the National Judicial Council recommend his absolute dismissal from the Nigerian judiciary to preserve the fading credibility of the bench.

“Our democratic architecture is under a coordinated assault by compromised custodians of the law. Under suit number FHC/ABJ/CS/2637/2026, Hon. Justice Peter Odo Lifu delivered a highly controversial ruling ordering the Independent National Electoral Commission (INEC) to deregister the ADC and four other political parties. This judgment is not an honest legal error; it is a calculated, politically motivated act designed to shrink the democratic space in Nigeria and artificially consolidate a two-party monopoly.”

While lamenting what he described as “legal distortions and judicial rascality tying Justice Lifu to this systemic compromise,” the ADC Youth leader said, “Justice Lifu brazenly proceeded with this judgment despite a binding Court of Appeal order that explicitly stayed proceedings on this matter, a move that subverts the sacred doctrine of stare decisis and constitutes gross misconduct.”

“The bench looked away as the plaintiffs, the Incorporated Trustees of the National Forum of Former Legislators, clandestinely altered their legal personality midway through the process without a valid court order.

“While the NJC has previously dismissed certain claims due to standard procedural hurdles, the persistence of these identical accusations across multiple petitions—including those by the Chairman of the Boot Party—proves a systemic erosion of public trust.

“We cannot watch the political rights of millions of young Nigerians be auctioned off by compromised benches. The continuous involvement of Justice Lifu in ADC affairs completely destroys public trust and makes a mockery of fair hearings. As the protectors of our nation’s future, we declare that when the bench compromises its integrity, the youth will become the courtroom of public conscience. The ballot box belongs to us, and we will not allow any court to rob us of our political expression.”

“Until the Council acts to protect institutional integrity, enforces discipline, completely recuses this individual from our affairs, and begins the process for his immediate sack from the bench. Respectfully submitted on behalf of the Nigerian youth during a live protest.”

This comes as Lifu, in a judgment, ordered the Independent National Electoral Commission to deregister five opposition parties, including ADC. 

However, following widespread condemnation, the appeal court ordered a stay of execution of the judgment. 

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IPCR, SFCG urge action to save democracy from conflict drivers

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The Institute for Peace and Conflict Resolution (IPCR) and Search for Common Ground (SFCG) have called for efforts to address conflict drivers threatening democracy.

The organisations made the call on Thursday in Abuja at a joint news conference to commemorate the 2026 Democracy Day.

The Director-General of IPCR, Dr Joseph Ochogwu, said democracy remained the best form of government and depended on active citizen participation.

According to him, weak civic engagement, voter apathy and poor democratic culture continue to challenge democratic consolidation in Nigeria.

Mr Ochogwu said IPCR’s conflict assessments showed that many pressures on democracy stemmed from citizen disengagement rather than democracy itself.

He urged Nigerians, especially youths, to participate actively in elections and governance processes to strengthen democratic institutions.

The IPCR boss described electoral violence, intimidation and coercive political practices as serious threats to democratic development.

He called on political actors, electoral institutions, security agencies, media organisations and civil society groups to promote peaceful political engagement.

Mr Ochogwu also expressed concern over the increasing monetisation of politics, saying it excluded ordinary citizens from meaningful participation.

He identified terrorism, banditry, organised crime and violent extremism as major threats undermining governance and public confidence in institutions.

Responding to questions, Mr Ochogwu said insecurity would not prevent the conduct of elections in 2027.

He urged Nigerians not to lose hope in the country and to continue supporting democratic processes.

The Director of Programmes, Search for Common Ground,  Gift Omoniwa, said protecting democracy required addressing insecurity and conflict drivers.

Mrs Omoniwa said banditry, kidnapping and violent extremism continued to threaten peace, stability and democratic governance across Nigeria.

She stressed the need for inclusive approaches that address root causes of conflict and promote peaceful coexistence.

According to her, vulnerable youths remain targets for recruitment by violent groups, posing risks to national security and democracy.

She advocated greater youth empowerment, economic opportunities and meaningful participation in governance processes.

Mrs Omoniwa disclosed that SFCG and IPCR recently conducted conflict assessments in Benue, Nasarawa, Plateau and Taraba states.

She said the findings were being shared with stakeholders to support evidence-based interventions and conflict prevention efforts.

The interventions include strengthening early warning systems, peace committees and livelihood programmes in affected communities.

Mrs Omoniwa expressed confidence that the measures would support peaceful and credible elections in 2027.

She reaffirmed SFCG’s commitment to working with government institutions, civil society groups and communities to promote peace and democratic governance. 

(NAN)

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