ServiceNow Plans Up to 1,000 Job Cuts in Post-Acquisition Rightsizing

ServiceNow (NYSE: NOW) is planning to cut as many as 1,000 jobs this year as it integrates a series of recent acquisitions, people familiar with the matter told Investing.com. The workforce reduction is part of a previously announced strategy to manage headcount growth following several corporate takeovers.

Scope of the Reductions

The job cuts are being implemented over a period of several months as ServiceNow absorbs acquired companies including Moveworks, Veza, and Armis. The company's goal is to conclude 2026 with roughly the same number of employees it had at the start of the year.

• ServiceNow began 2026 with approximately 29,000 employees.
• Its current headcount stands at around 30,000 following the acquisitions.
• The planned reductions aim to bring the total back toward the 29,000 level.

This figure provides clarity after unconfirmed reports on social media suggested much larger layoffs of 3,000 to 5,000 employees, which sources said overstated the scale of the changes.

Strategic Context

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The plan aligns with public commitments made by CEO Bill McDermott during the company's last two earnings calls. McDermott told investors that ServiceNow would finish the year with the same headcount it started with, even after completing three major acquisitions. He stated the integration would allow for the scaling of operating and free cash flow margins.

Earlier this week, Business Insider reported that ServiceNow had been cutting hundreds of jobs, with a company spokesperson confirming that a "low single-digit" percentage of its workforce had been affected over several months. The potential 1,000 cuts represent just over 3% of the current headcount, consistent with that earlier statement.

Market Performance and Outlook

Despite the internal restructuring, ServiceNow recently reported strong second-quarter results that beat the high end of its guidance and prompted the company to raise its full-year subscription revenue outlook. CEO Bill McDermott highlighted the firm's $29 billion in remaining performance obligations and a ninefold increase in deployments of its AI tools.

The company's stock has faced pressure, falling over 24% year-to-date amid broader market concerns that artificial intelligence tools could disrupt the traditional enterprise software business model. However, ServiceNow's leadership has aimed to counter this narrative by emphasizing its own AI product adoption and robust financial fundamentals.