Targeting a “low single-digit” percentage of its headcount, ServiceNow is continuing an ongoing saga of layoffs across its operations, a decision that affects hundreds of its employees despite the humble estimate. According to Business Insider, the job cuts at ServiceNow have already spanned multiple months this year, taking the form of a global restructuring effort intended to balance headcount while employees acclimate to new technologies and processes.
Part of the ServiceNow layoffs have been tied to AI optimizations and investments across operations, with the business pushing its workforce to master the tech, much like other industry giants have this year. The organization’s considerable acquisitions have also taken some of the blame for the cuts, requiring the business to cut ties with some of its employees to return to scale. The company CEO previously alluded to the reductions within its operations so it could end 2026 with the same numbers it began, and this likely has something to do with the expansions.
Most recently, the American software company completed the acquisition of Israeli cybersecurity firm Armis for approximately $7.75 billion in cash, which was “expected to more than triple ServiceNow’s market opportunity for security and risk solutions.” This closely followed the company’s acquisitions in March 2026 of Veza, a deal valued at over $1 billion, and Traceloop, another deal valued between $60-80 million. These decisions, along with the recent raising of its full-year subscription revenue guidance, confirm that cost-cutting and cost savings are not necessarily an issue for the organization, making the ServiceNow layoffs a business decision solely centered on eliminating excess over all else.
The ServiceNow layoffs continue to claim victims across the workforce, even as the company continues on its acquisition spree. (Image: Pexels)
The ServiceNow Layoffs Appear to Be Part of the Organization’s Global Restructuring Strategy
Unlike most layoffs that come with a notice on what employees can expect in the coming days, the ServiceNow restructuring has reportedly been underway for months already. The company ended 2025 with 29,187 employees, and that appears to be the target for the end of 2026 as well. No exact percentages and headcount numbers have been shared publicly, and neither has the company shared its exact reasoning or timeline with its audience.
The San Diego Union Tribune suggests that 133 workers, primarily within senior and director-level roles, are to be let go at its San Diego office, with a few hundred more globally. Roles in customer-facing positions, engineering, and QA have been targeted so far, with the layoff expected to go into effect by September 28, 2026.
Is AI Driving the ServiceNow Layoffs?
“ServiceNow is committed to having the right talent in the right roles, and that means making necessary changes to how we are structured,” a spokesperson was reported saying, according to SF Ben. “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, as we shared earlier this year. That’s how we grow sustainably and win,” they added in the statement.
The emphasis on AI has been apparent in the company’s quarterly earnings report as well as its recent acquisitions. While the purchase of Israeli AI platform ai.work has been the most recent feather in its proverbial cap, the company has made seven acquisitions of companies with ties to Israel in recent years, according to Calcalist Tech, showcasing the company’s close ties to the region and the extent of AI and cybersecurity technology emerging from it.
As its reports show, the company is performing well and isn’t strapped for cash either, making these layoffs a business decision born out of a need to optimize its resources.
The Trend of Forever Layoffs and Its Impact on the Workforce Continues to Be a Focal Concern
The ServiceNow job cuts aren’t just affecting employees who have been cut off from employment, but those who have survived previous rounds as well. Many employees have taken to social media to complain about how these layoffs have been conducted, with employees receiving 6 AM emails informing them of the cuts, and then being forced to turn to platforms like Blind to better understand what is going on. Employees who might have felt safe after avoiding layoffs in June now have to combat the anxiety of the cuts all over again, seeing no peace from these forever layoffs.
The slew of acquisitions suggests that the company has no dearth of resources, making the job cuts all the more frustrating for workers who are already playing their part in contributing to operations. The lack of reasoning and justification behind these cuts has employees feeling helpless, unable to determine just what it takes to remain employed, as performance no longer appears to be a metric by which to ensure retention. “I think from this experience I’ve truly realized that we are just numbers. I really do believe that in this day and age, layoffs are completely random, and it’s like drawing the short stick in a gambling game,” one employee shared on Team Blind.
How am I just now learning about ServiceNow CEO Bill McDermott? What a character.
Here he is chanting about how 2026 belongs to those that say YES to AI.
He just laid off hundreds more today to say YES.$NOW‘s AI business just passed $1 billion in annual contract value this… pic.twitter.com/xuCGaG6P6I
— LayoffHedge (@LayoffAI) July 29, 2026
CEO Bill McDermott has been quoted as saying, “Trust is won in drops and lost in buckets,” but that principle doesn’t appear to reflect in the company’s actions, according to its employees online. This dissolution of trust in the workplace continues to contribute towards a feeling of unrest and dissatisfaction across the workforce, and could have lasting repercussions on their attitude towards work and employment for years to come.
Affected by the ongoing ServiceNow layoffs in 2026? Write to us or share your experience in the comments. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
