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Why do we need to complicate here? cloudFlare is not making any profit. They are losing money. The board probably wants profit now (they predict less growth) s
by tlogan 5mo ago
Why do we need to complicate here? cloudFlare is not making any profit. They are losing money.
The board probably wants profit now (they predict less growth) so the management needs to cut the costs.
This AI story is a just an excuse. If there is not AI they will say “high gas prices”. Or “inflation”. Or whatever …
It is true that the companies like Meta, Oracle and Microsoft are laying off due to AI but because they need money to build compute power.
There are some companies who maybe do lay offs due to AI replacing employees. But this might not be the one.
- ryandvm 5mo agoI'll just point out that this is exactly the point in the corporate character arc where every company before turns evil. I never liked the idea of every web site in the world using CloudFlare, but I like it even less now that they're struggling.
- the_af 5mo ago> so the management needs to cut the costs I love it that they explicitly say in their blog post "this is not a cost cutting exercise". Of course, every "regrettably..." letter from company execs is understood to be an entirely performative ritual.
- tlogan 5mo agoOne smart old guy once told me that the only language you need to speak in the financial world is spreadsheets. No words needed.
- nyc_data_geek1 5mo agoTake it a step further. Words, in the financial world are largely used for obfuscation, marketing, concealing of the truth by financially motivated actors. Thus, financial literacy is looking at the numbers, market conditions and geopolitical situation, while consciously discarding whatever bullshit corporate speak is being disseminated by captured media.
- jiveturkey 5mo ago> They are losing money. They have $4b in cash and Q1 FCF $84m, and 70% gross margin. They can become profitable anytime they want.
- tlogan 5mo agoAnd apparently “anytime they want” is going to be this year.
- onlyrealcuzzo 5mo agoWhat's the reasoning that software companies don't have to count R&D into gross margins? > They can become profitable anytime they want. By cutting 1100 workers!