PANews reported on May 8th that, according to Reuters, US cybersecurity services company Cloudflare announced it will lay off approximately 20% of its workforce, or more than 1,100 employees, as part of an operational restructuring centered around AI tool applications. CEO Matthew Prince stated that the company is redesigning every team and function to adapt to the era of proxy AI. Cloudflare claims its own AI usage has increased more than sixfold in the past three months, and that the layoffs are a redesign of internal processes and roles, rather than due to employee performance or short-term cost pressures.

Cloudflare expects second-quarter revenue of approximately $664 million to $665 million, slightly below analysts' expectations of $665.3 million. Despite first-quarter revenue and profit exceeding expectations, its stock price fell approximately 19% in after-hours trading.