- ServiceNow cuts jobs, reflecting broader challenges in the software sector.
- CEO Bill McDermott has urged staff to make workflows more efficient as a model for customers.
- ServiceNow has made several large acquisitions this year.
A ServiceNow spokesperson said a “low single-digit” percentage of the company’s total head count has been affected by the cuts, which have happened over several months this year.
ServiceNow ended 2025 with 29,187 employees, so the cuts likely total several hundred jobs.
CEO Bill McDermott said at the start of this year that ServiceNow would end 2026 with the same head count as it started the year with. He’s also been pushing staff to reorganize their workflows to embrace new technology and be an example to ServiceNow customers on how to become more efficient.
ServiceNow has also made some big acquisitions in the past year, such as Armis and Veza, so the company is likely streamlining operations from integrating these new businesses.
One ServiceNow employee told Business Insider on Tuesday the cuts were described internally as a global restructuring and said it had been a “very tough day.” This person asked not to be identified discussing sensitive matters.
Investors have hammered some software stocks in the past year on concerns that AI will disrupt the sector by reducing demand and making it easier for companies to develop their own software tools.
ServiceNow, like many enterprise software companies, is investing heavily in AI while reshaping parts of its business.
Last week, ServiceNow reported quarterly results that met or exceeded Wall Street expectations and raised its full-year subscription revenue guidance, even as investors continue to debate how AI will reshape the software industry.
