[akomtu]

Of course it's a lie. Cloudflare is saying, essentially: "AI is making us so profitable that we've decided to reduce our profit by 20%, to keep it reasonable."

[therealdrag0]

But they’re not profitable? They make 450k per employee revenue, but lose 17k profit. Meanwhile they spend 470 million in stock based compensation for example, up 100 mil from year before, on 5k employees, which they’ve been increasing a lot every year.

[GalaxyNova]

by laying people off they increase their profit, at least in the short term (which is all that shareholders care about)

[fauchletenerum]

Not with the severance package they're offering, which is why their stock was down between 15-18% after announcing this

[usefulcat]

Look at the chart of their stock price over the past couple of months. There was a huge run that started literally just over a week ago. Even after this 20% drop, the price today is only slightly below where it was before that run.

Their stock price has been pretty volatile for a while now (6+ months), so even with a swing of this magnitude I don't think it's valid to see it as much more than a correction.

[jbverschoor]

They’ve been pumping out products like crazy

They don’t need them. Simple as that

[pm90]

someone has to maintain a he products

[happymellon]

More AI?

[grey-area]

Good luck with that.

[happymellon]

I'm sure that more AI will solve that problem too.

[throwaway2037]

I am confused by this post. No trolling: You wrote "reduce". Did you mean to say/write "increase"? If you layoff people to reduce costs, then your profitability should increase.

[californical]

That’s a very MBA way of thinking.

If we extend the logic, if we have 0 employees then profitability is maximized right? Then shouldn’t every company have 0 employees?

Obviously hiring increases profitability, otherwise some of the biggest headcount companies wouldn’t have hired so many people