Read the memo: Cloudflare is laying off 1,100 employees to prepare for 'the agentic AI era'

Cloudflare is laying off 1,100 staff as it prepares for "the agentic AI era," the company announced on Thursday. Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images

Cloudflare on Thursday announced layoffs of 1,100 staff as it reorganizes for "the agentic AI era."

First-quarter earnings exceeded expectations, but Cloudflare shares dropped over 14% after hours.

Read the full memo sent to staff below.

Cloudflare is laying off more than 1,100 employees as the cybersecurity company says it is reorganizing for the "agentic AI era," according to a memo sent to staff on Thursday.

The cuts came hours after the company reported first-quarter earnings that beat Wall Street expectations, though shares fell sharply in after-hours trading — more than 14% at the time of publication.

In the memo, Cloudflare executives said the company's use of AI has surged "more than 600% in the last three months alone,"…