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Layoffs could positively affect margins, indicating potential for improved profitability. Historically, companies that restructure effectively enhance their competitive positioning.
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Cloudflare recently laid off over 1,100 employees, about 20% of its staff, as it reorganizes to adapt to a 600% increase in AI usage. This strategic move may enhance operational efficiency and drive future growth, making it critical for investors to monitor its restructuring progress and performance metrics.
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