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Cloudflare Layoffs Announcement 2024: Know The Reasons

Cloudflare is an American company that aims to enhance the performance and security of millions of websites globally.

However, Cloudflare has announced its 2024 Layoffs, taking off a group of employees with no warning.

The video that broke news on Cloudflare Layoffs 2024 has raised waves of frustration. However, the company announced that the Layoff was based on employee performance.

This article will examine the facts of the current state of Cloudflare and the reason behind Cloudflare Layoffs 2024.

Cloudflare Employee Layoffs 2024

Cloudflare was founded in 2009 and provides a range a range of services related to internet security, and performance optimization.

The company has become a prominent player in the area of web infrastructure and website security services.

Hence, this leading company has recently announced a significant round of layoffs which made all the sales staff frustrated.

However, this employee layoff has become a disheartening reality, causing ripples of frustration and uncertainty among the sales staff.

This layoff has impacted extremely on the morale and loyalty of the remaining employees.

Why Is Layoff Happening At Cloudflare?

In 2024, the company laid off 12% of their sales team, blaming the salespeople for their poor performance.

The CEO of Cloudflare, Matthew Price has been vocal and mentioned that some salespeople have consistently missed expectations.

The company’s CEO said, “Many of our sales team succeed largely by just taking orders” during the First Quarter call.

Employees facing layoffs experience shows uncertainty about their future.
Employees facing layoffs experience reporting on social media.

Moreover, he compared the company’s 2022 deals to “fish jumping right in the boat” which didn’t require their salespeople to be “very good fishermen”.

Here is the list of Cloudflare’s 2023 financial performance for Q1, Q2, and Q3.

  1. First Quarter of 2023: Revenue: $290.2 million, Net Loss: $38.1 million, Net Loss per Share: $0.12, Cash and Cash Equivalents: $256.4 million.
  2. Second Quarter of 2023: Revenue: $308.5 million, Net Loss: $94.5 million, Net Loss per Share: $0.28.
  3. Third Quarter of 2023: Revenue: $335.6 million, Net Cash Flow: $68.1 million, Free Cash Flow: $34.9 million.

Employees Reaction Towards Cloudflare Layoffs

Cloudflare layoffs in 2024, the way how layoffs have been executed, have raised controversies.

Moreover, this layoff has sparked intense debates about the fairness and the responsibility of companies towards their workforce.

Recently, one of the former Account executives of Cloudflare who was laid off from work posted a video on TikTok.

Account Executive record her termination call
The Account Executive records her termination call.

She posted a 9-minute TikTok video, in which HR informed her that she was being let go from the company due to her poor performance.

She didn’t agree with the decision and fired back the HR.

However, the employees are not satisfied with this decision of the company and claim that there is bias in the selection process for layoffs.

The Bottom Line

In summary, Cloudflare is aiming for agility and competitiveness and has undergone restructuring and reorganization resulting in layoffs.

However, laid-off employees are questioning their job security and the company’s commitment to its workforce.

Continue reading to discover whether Shein is shutting down and if you can still order from Shein after RICO charges.
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