---
title: "Cloudflare’s AI-first overhaul sparks sharp stock drop, mixed analyst views"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286094514.md"
description: "Cloudflare announced it will lay off over 1,100 employees, approximately 20% of its workforce, to focus on AI-native operations. Following this news, shares dropped 24% despite strong Q1 results, as investors considered weak Q2 guidance and restructuring costs. Analysts are divided, with some viewing the shift as a strategic long-term gain, while others express concerns about execution risks and potential sales disruptions."
datetime: "2026-05-12T11:59:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286094514.md)
  - [en](https://longbridge.com/en/news/286094514.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286094514.md)
---

# Cloudflare’s AI-first overhaul sparks sharp stock drop, mixed analyst views

Major layoffs announced: Cloudflare will cut over 1,100 jobs, about 20% of staff, to realign operations around AI-native workflows. Market reacts sharply: Shares plunged 24% after record highs as investors weighed strong Q1 results against weak Q2 guidance and restructuring costs. Analyst opinions split: Some brokerages see a strategic pivot toward long-term gains; others flag execution risks and potential sales disruption.

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