Cloudflare to cut 20% jobs, quarterly revenue forecast falls short (updated)

Cloudflare

07/05/2026 21:55

Corrects paragraph four to say Michelle Zatlyn is co-founder, not CFO

May 7 (Reuters) - Cloud services firm Cloudflare NET.N forecast quarterly revenue below estimates on Thursday, and said it is laying off about 20%, or more than 1,100, employees globally.

Shares of the company fell more than 13% in extended trading.

The company expects second-quarter revenue between $664.0 and $665.0 million, compared with estimates of $665.3 million, according to data compiled by LSEG.

The layoffs reflect a shift to an AI-driven operating model, CEO Matthew Prince and co-founder Michelle Zatlyn said in a statement.

 (Reporting by Anhata Rooprai in Bengaluru; Editing by Sahal Muhammed)

 ((Anhata.Rooprai@thomsonreuters.com))