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Cloudflare Slashes 20% Staff as AI Costs Bite and Growth Misses Forecasts
Technology
Published on 8 May 2026
A revenue miss triggers layoffs tied to AI adoption
Cloudflare shares fell after the company’s revenue forecast missed investor expectations, even as its stock had recently rallied. The firm also plans to cut staff by 20%, saying more work is being handled through AI tools. Analysts warned that higher AI infrastructure spending is squeezing profit margins, though some investors still see upside ahead.
- Cloudflare shares drop after a revenue forecast misses
- Company cuts staff by 20% citing AI tool usage
- AI infrastructure costs are pressuring profit margins
- Some analysts remain optimistic about future growth
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times