And they are not even laying off for cost reasons.
Last week, Cloudflare cut 20% of its workforce (more than 1,100 people). They are doing great with profits, stocks were rising. But CEO Matthew Prince directly states: this is not due to bad performance reviews or lack of money. It is a transition to an "agentic AI-first operating model." In three months, their internal use of AI grew 6 times, and processes were restructured so that a fifth of employees simply became a rudiment. Their tasks are now handled by agents.
You might say: "Well, that's Cloudflare, they're in Silicon Valley, they're just messing around."
Okay, let's look at the real sector. General Motors just cut more than 10% of its IT department (about 600 people). And immediately opened hiring for the same positions but with different requirements. Who are they looking for? AI-native engineers, data engineers, pipeline development and model tuning specialists. As insiders emphasize: they need people who can build AI systems from scratch, not those who just use ChatGPT as an advanced StackOverflow or a plugin in an IDE.
Are you preparing?
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