Cloudflare is laying off more than eleven hundred employees worldwide as part of what executives are calling an AI-driven restructuring for the "agentic AI era." The company says AI usage by employees has surged over 600 percent in the past three months across departments like HR, marketing, finance, and engineering, prompting a reorganization they insist is not about cost-cutting or performance. Despite beating revenue forecasts, Cloudflare's stock dropped more than 20 percent following the announcement, and departing employees will receive severance equivalent to their full base salary through the end of 2026.