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The Register - Off-Prem

Billing software error sends billion-dollar AWS estimates Top EU court clips YouTube AWS CloudFront outage serves errors instead of websites India’s tech services giant HCL is getting into the AI datacenter business Britain Microsoft shifts to annual exchange rate price revision for cloudy products Amazon’s Mechanical Turk to stop accepting new customers – and not even AI can save it Fire burns Google Cloud India’s network, which remains slow a week later EU sovereignty push gives tech buyers a new alphabet soup to swallow Google, Canonical team up to certify Ubuntu images for TPU VMs Arm moves into the heart of the cloud stack Snowflake to burn $6B on AWS Graviton CPUs and AI accelerators Big Tech extracts retirement-scale wealth from UK internet users, research shows Open Compute urges local government to bask in the warm glow of excess datacenter heat Google Cloud suspended major customer Railway.com without cause, causing outage Broadcom finds a VMware customer willing to stick around: London Stock Exchange Baidu says the quiet part out loud – you can’t build AI infrastructure, so clouds can cash in AWS racks M3 Ultra Macs that boast specs you can’t currently buy Tencent admits GPUs only pay for themselves when powering personalized ads Red Hat blasts RHEL 10.1 into orbit aboard Voyager's micro datacenter Sovereign cloud is only possible if you’re Chinese or American: Gartner AWS warns of EC2 'impairment' as power loss hits notorious US-EAST-1 region IBM Cloud evaporates as datacenter loses power Neocloud IREN buys OpenStack champion Mirantis AWS lets agents drive its virtual cloudy desktops Anthropic comes for the midmarket software spend VMware claims Cloud Foundation on track for world domination Microsoft to stop reservations for 17 Azure VMs, kill 13 DVSA shrugs off claims of week-long booking site issues ServiceNow under siege as Atlassian adds to ITSM take-outs ICANN opens applications for new gTLDs AWS says server memory shortage pushing customers to cloud Survey: US workers are not keen on Microsoft's AI Google to sell its TPUs to some customers Microsoft lifts 2026 CapEx by $25B to cover price rises Service change takes down Microsoft Outlook for iOS Google Cloud Next made it clear: AI is coming for everything Trump threatens UK with ‘big tariff’ over digital tech tax Workday, Rippling, Slack lflunk data access test: Fivetran Grafana offers AI assistant for free, warns users not to go mad UK tribunal sends £2B claim accusing Microsoft of overcharging for licensing to trial £2B Microsoft licensing claim gets go-ahead from UK tribunal The spaghettified DBMS chart that shows Oracle's crown is slowly slipping One of Europe's sovereign cloud picks may not be so-sovereign after all Europe picks 4 sovereign cloud providers, but one has Google UK weighs break clause in Palantir NHS deal Atlassian’s new data collection policy protects rich customers while AI eats the rest Atlassian to train AI on user data unless law or cash say no Users complain of UK Azure capacity problems Microsoft closes book on rogue Windows Server 2025 upgrades McGraw Hill linked to 13.5M-record data leak Britain sends 'biggest ever drone package' to Ukraine Networks not ready for the challenges of AI traffic UK told its Big Tech habit is now a national security risk Commvault has a Ctrl+Z for rogue AI agents How ServiceNow gets customers to gorge at the AI trough UK startup to supply drone interceptors for Britain, allies Digital sovereignty isn't just a buzzword – it's the future Salesforce is taking on ServiceNow in ITSM. 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Cloudflare to fire 1,100 staff whose jobs just aren’t AI enough
Simon Sharwood · 2026-05-08 · via The Register - Off-Prem

Off-Prem

Around 20 percent of staff get an ‘In one hour, you might not work here anymore’ email

Cloudflare has revealed it will farewell 1,100 staff, due to its current and future use of AI.

In a blog post that oozes Orwellian “doublespeak,” CEO Matthew Prince and Co-Founder, President and Co-Chair Michelle Zatlyn used the headline “Building for the future” to share the email they sent to all employees.

That mail opens: “We are writing to let you know directly that we’ve made the decision to reduce Cloudflare’s workforce by more than 1,100 employees globally.”

The post explains, “Cloudflare’s usage of AI has increased by more than 600% in the last three months alone. Employees across the company from engineering to HR to finance to marketing run thousands of AI agent sessions each day to get their work done.”

All that AI means “we have to be intentional in how we architect our company for the agentic AI era in order to supercharge the value we deliver to our customers and to honor our mission to help build a better Internet for everyone, everywhere.”

Sackings are therefore needed, and are “about defining how a world-class, high-growth company operates and creates value in the agentic AI era.”

To rub salt into the wounds of sacked staff, the email went out not long before Cloudflare announced quarterly results that included 34 percent year-over-year revenue growth and guidance for 30 percent future growth.

Prince opened the company’s earnings call by stating “We had a very strong start to 2026.”

Analysts on the earnings call asked Prince to explain the layoffs and whether they will make Cloudflare stronger.

“We have seen that there are roles at Cloudflare that are not the roles we need for the future,” Prince responded. “Just because you are fit does not mean you cannot get fitter. Over the last six months especially, the productivity gains from the people directly talking to customers and directly creating code have been incredible, and a lot of the support roles behind them are not going to be the roles that drive companies going forward.”

The CEO said Cloudflare has “always lived a little bit in the future” and said the company is an early beneficiary of AI.

And he said the company will keep hiring.

“The people embracing these tools are so much more productive than we have ever seen before,” he said. “I would guess that in 2027 we will have more employees than we did at any point in 2026, but the roles are changing dramatically, and you have to do something dramatic to make that shift.”

“This is not about downsizing or saving costs,” Prince said. “This is about having the right people in the right roles to build the future.”

As is often the case these days, the email to staff warned them of a brief doomsday countdown.

“Within the next hour, every member of our global team will receive an email from both of us clarifying how this change affects them,” the message states. “For those departing today, we will send this update to both their personal and Cloudflare addresses to ensure they receive the information immediately.”

The Register imagines that went down well for workers in time zones where employees might avoid their work email outside 9-5, but sneak an early-morning-or-late-night-glance at their personal inboxes. 

Prince and Zatlyn told employees they hope “to do this only once” and then contradict themselves by saying they “don’t want to do it again for the foreseeable future.” 

“By taking decisive action now, we provide immediate clarity to those departing and protect the stability of the team that remains,” they wrote, before adding their view that one deep cut because “dragging a reorganization out over multiple quarters creates prolonged emotional uncertainty for employees and stalls our ability to build.”

 Firing 1,100 people is therefore “the right thing to do; it’s the honest thing to do; and it reflects the values of the company we are continuing to build.” ®