RestructuringMay 7, 2026, 05:17 PM
Cloudflare Cuts 20% of Workforce; Q1 Revenue $639.8M
AI Summary
Cloudflare announced a plan to reduce its workforce by approximately 20%, impacting around 1,100 employees, to accelerate its "agentic AI-first operating model." This restructuring is expected to incur $140 million to $150 million in charges, primarily in Q2 2026. Concurrently, the company reported strong first-quarter 2026 financial results, with revenue increasing 34% year-over-year to $639.8 million and non-GAAP net income per diluted share of $0.25. Cloudflare also provided an optimistic financial outlook for Q2 and the full fiscal year 2026.
Key Highlights
- Cloudflare announced a plan to reduce its workforce by approximately 20% (1,100 people).
- The company expects to incur $140 million to $150 million in restructuring charges.
- Q1 2026 revenue increased 34% year-over-year to $639.8 million.
- Q1 2026 non-GAAP net income per diluted share was $0.25, up from $0.16 YoY.
- Q1 2026 free cash flow was $84.1 million, representing 13% of revenue.
- Forecasts Q2 2026 revenue of $664.0 million to $665.0 million.
- Projects full-year 2026 revenue of $2,805.0 million to $2,813.0 million.
Price Impact
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