In a dramatic move that has once again ignited debate across the tech industry, Cloudflare announced major layoffs in May 2026, slashing more than 1,100 roles, i.e. roughly 20% of its global workforce. While the company has framed these Cloudflare layoffs ‘not as a response to financial trouble’, the deliberate shift into the agentic AI era speaks volumes. Cloudflare layoffs, detailed in the CEO memo titled “Building for the future,” has forced a rift in how companies now assign value to roles.