In July 2012, the cofounders of CloudFlare, a Silicon Valley startup that protects websites and accelerates their traffic, are considering the implications of five employees' resignations over the prior three months. Was this natural attrition for a high-tech venture with a staff of 35 experiencing explosive growth, or were the resignations symptomatic of bigger issues with CloudFlare's culture and management processes? After describing CloudFlare's early history, business model, organization structure, and human resources policies, the case presents first-person accounts from employees regarding their reasons for resigning, and then asks whether CloudFlare's cofounders should take any corrective actions.

Discussion Questions

How does CloudFlare's organizational structure and culture fit with its strategic goals?
CloudFlare does not discriminate amongst customers. How could this affect the next stage in the companiy's growth?
Are CloudFlare's hiring practices effective? What, if anything, would you change?
Matthew Prince seems to view employee resignations as the result of burnout from the fast-paced, intensive work culture. Do you agree? What should CloudFlare do to address this issue?
How would you rate Matthew Prince's actions as CEO at this stage of the company ? Do you have any recommendations?