ServiceNow has reportedly laid off more employees in its third round of job cuts this year. The latest cuts are said to affect roles across the UK, the US and India. However, the company has not confirmed the number of employees affected.
The development follows the company’s third-quarter 2026 earnings announcement and comes amid its wider push to improve efficiency and invest in artificial intelligence.
ServiceNow Restructures Workforce
ServiceNow said it is making changes to its organisational structure as it focuses on business efficiency and AI-related skills. The company stated that it is actively investing in and hiring employees with AI-focused skills while managing its workforce to end 2026 at the headcount level it had shared earlier in the year.
ServiceNow added that these changes are part of its approach to sustainable growth.
The company’s workforce stood at around 29,000 at the beginning of the year and later reached approximately 30,000. The number of employees affected by the latest round of cuts remains unknown.
CEO’s Workforce Comments Draw Attention
The latest layoffs follow comments from ServiceNow CEO Bill McDermott about the company’s workforce. A week earlier, he described a smaller workforce as a “gorgeous situation” when questioned about declining employee numbers. The discussion included workforce reductions across sales and marketing, as well as research and development.
Q4 Guidance Falls Short of Market Expectations
ServiceNow reported strong overall results for the third quarter of 2026. However, its forecast for fourth-quarter current remaining performance obligations (cRPO) growth came in at 18.5% in constant currency.
This was below Wall Street’s expectation of 19.8%. Following the announcement, the company’s shares fell 27%, marking the worst single-day decline in its history.
The wider technology sector has also faced significant job cuts this year. According to Layoffs.fyi, 142,004 technology employees across 346 companies had lost their jobs in 2026 at the time of the report.
