Hundreds of ServiceNow employees have lost their jobs after the software giant launched a global restructuring effort. The layoffs are the latest in a wave of tech industry job cuts despite strong financial results.
The company confirmed that a 'low single-digit' percentage of its workforce was affected, but it didn't provide an exact number. Based on the company's workforce of nearly 30,000, the layoffs are estimated to have affected several hundred employees.
The company said the restructuring reflects its focus on artificial intelligence (AI), the integration of recent acquisitions, and efforts to boost operational efficiency.
Unexpected Separation Emails Shock Employees
For many employees, the layoffs came as a complete surprise. One employee posted their experience on Reddit after finding a separation notice before the workday had even begun.
'I woke up and saw a ServiceNow separation notice in my personal email account received at 6:53 am without warning,' the worker wrote. Only hours before, they had worked late into the night responding to urgent customer requests, with plans to finish the remaining work that morning.
Meanwhile, another employee in Dublin said that the staff were invited to a 10:30 am meeting. Employees said cameras and microphones were disabled, making it difficult to tell who else had joined the meeting or which teams were affected. 'There will be a consultation period. Apparently, we will receive more information via email this afternoon,' the employee posted.
ServiceNow Shifts Workforce Toward AI
ServiceNow said that the job cuts are part of a broader effort to realign its workforce around AI. Although some positions are being eliminated, the company said it's actively hiring workers with AI-focused skills. 'We are driving efficiencies across the business, actively investing in and hiring for AI-focused skills, and managing headcount with discipline to end 2026 where we started,' a ServiceNow spokesperson said.
Earlier this year, CEO Bill McDermott said that the company plans to finish the year with the same headcount it started with, indicating the layoffs are part of a workforce realignment instead of a long-term reduction.
Acquisitions and AI Drive Restructuring
ServiceNow's restructuring came after its acquisitions of Armis and Veza, which are also expected to result in some overlapping functions as ServiceNow integrates the businesses. The company is integrating the acquired businesses while expanding AI hiring and reallocating resources toward higher-growth areas.
McDermott has consistently urged employees to rethink workflows, embrace new technologies, and boost customer productivity as AI takes centre stage in the company's future.
Solid Results Couldn't Stop the Layoffs
The layoffs come even as ServiceNow posted quarterly results that met or beat Wall Street expectations and raised its full-year subscription revenue outlook. Many investors have encouraged software companies to invest aggressively in AI while maintaining cost discipline.
Some ServiceNow employees have claimed on Reddit that the latest round of layoffs could be larger than previous cuts. One Reddit user alleged that around 3,000 workers globally could lose their jobs within 18 hours, with the process already beginning with teams in India.
The move is part of a wider shift in the technology industry. Data from Layoffs.fyi shows more than 120,000 tech workers have lost their jobs across more than 200 companies in 2026 as firms restructure and increasingly prioritise AI-driven initiatives.
