---
title: "Cloudflare says AI made 1,100 jobs obsolete, even as revenue hit a record high"
url: https://daily.dev/posts/cloudflare-says-ai-made-1-100-jobs-obsolete-even-as-revenue-hit-a-record-high-egkmyh2zr
source_url: https://techcrunch.com/2026/05/08/cloudflare-says-ai-made-1100-jobs-obsolete-even-as-revenue-hit-a-record-high
type: article
source: "TechCrunch"
published: 2026-05-08T18:38:03.779Z
updated: 2026-05-13T14:31:30.204Z
tags: ["cloudflare", "vibe-coding"]
reading_time: 5
upvotes: 1
comments: 1
language: en
---

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

**[TechCrunch](https://daily.dev/sources/tc)** · 5 min read · 1 upvotes · 1 comments

## Summary

Cloudflare announced its first-ever mass layoff, cutting approximately 1,100 employees (20% of its workforce), even as it reported record quarterly revenue of $639.8 million — a 34% year-over-year increase. CEO Matthew Prince attributed the cuts entirely to AI-driven productivity gains, not cost-cutting, saying internal AI usage surged 600% in three months and that employees are now 2x to 100x more productive. The entire R&D team uses Cloudflare's own Workers platform including its vibe coding feature, with 100% of AI-generated code reviewed by autonomous AI agents. Prince argued that highly productive AI-empowered employees require fewer support staff, and predicted Cloudflare will have more total employees by 2027 than at any point in 2026. The move mirrors a growing pattern at Meta, Microsoft, and Google of pairing strong revenue growth with AI-justified layoffs.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://techcrunch.com/2026/05/08/cloudflare-says-ai-made-1100-jobs-obsolete-even-as-revenue-hit-a-record-high>

## Community discussion

Top comments from developers on daily.dev.

**@carsonstricker** · 1 upvotes

> Now more than ever I'm glad to be part of a small company that values it's employees.

---

Tags: [#cloudflare](https://daily.dev/tags/cloudflare), [#vibe-coding](https://daily.dev/tags/vibe-coding)

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