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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."
by akomtu 5mo ago
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."
- jbverschoor 5mo agoThey’ve been pumping out products like crazy They don’t need them. Simple as that
- pm90 5mo agosomeone has to maintain a he products
- happymellon 5mo agoMore AI?
- grey-area 5mo agoGood luck with that.
- happymellon 5mo agoI'm sure that more AI will solve that problem too.
- GalaxyNova 5mo agoby laying people off they increase their profit, at least in the short term (which is all that shareholders care about)
- fauchletenerum 5mo agoNot with the severance package they're offering, which is why their stock was down between 15-18% after announcing this
- usefulcat 5mo agoLook 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.
- therealdrag0 5mo agoBut 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.
- throwaway2037 5mo agoI 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 5mo agoThat’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