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

Cloudflare eliminated 1,100 jobs (20% of workforce) despite record $639.8M quarterly revenue, citing AI-driven productivity gains of 600% in the last three months that have made support and non-revenue-generating roles obsolete. This trend mirrors major tech peers and signals a fundamental shift in how companies structure workforces in the agentic AI era, with implications for IT organizations to rapidly upskill remaining staff and reimagine support function architectures. CIOs should expect similar pressures across their organizations as AI agents increasingly handle code review, testing, and operational support tasks that traditionally required dedicated teams.