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Cloudflare shocks Wall Street with AI layoffs despite earnings beat – TON BOT

Cloudflare shocks Wall Street with AI layoffs despite earnings beat

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Cloudflare’s shares dropped 18% after announcing plans to cut 1,100 jobs for an AI-focused restructuring. Despite beating Q1 revenue and EPS expectations, investors were concerned about the layoffs and softer revenue guidance. The move reflects a larger trend in the tech industry towards automation and AI tools, with companies like Amazon and Microsoft also cutting jobs for AI investments. Despite the sell-off, Cloudflare maintains its full-year revenue outlook and aims to improve efficiency through AI integration.

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