Shot:

CloudFlare fires 20% staff claiming it's because of "AI"-related productivity gains
https://techcrunch.com/2026/05/08/cloudflare-says-ai-made-1100-jobs-obsolete-even-as-revenue-hit-a-record-high/

Chaser:

Since that announcement CloudFlare stock lost 22% of value.

Even investors seem to not be buying the "AI productivity gains" bullshit anymore.  

#AI #CloudFlare #Layoffs #Bubble

@rysiek It does seem like the rational response to 'AI firings'.

If I had a tool that would genuinely make my people more productive, but instead of using it to build more and better products, I use it for cutting costs, what signal does that send?

Either I'm completely without ambition, and unfit to lead a growing company, or my product and its market are no longer evolving and I'm converting to large scale, low margin modes of operation.

Neither is a very attractive target for investment.

@wouterla yes, I agree. But up until now-ish, this strategy paid of big time for the tech companies. They announced huge lay-offs, blamed "AI productivity" (always without proof), and then usually got a bump in stock price…
@rysiek @wouterla what's terrify about the entire thing is I've heard the tales of our Cloudflare migration. Let's just say that thankfully it was a fixed cost project ...