ServiceNow has laid off hundreds of employees in a restructuring effort, a move that contradicts earlier statements from CEO Bill McDermott that the company would avoid such cuts. The layoffs are part of a broader plan to manage headcount and reskill the workforce with a greater focus on artificial intelligence. The specific number of affected employees has not been officially disclosed, but it is reported to be in the hundreds.
This decision comes after McDermott stated in early 2026 that the company would manage its workforce by not backfilling positions vacated through natural attrition, attributing this to productivity gains from AI. In a statement, ServiceNow confirmed it is managing headcount with discipline to end the year with the same number of employees it started with, citing "real AI efficiencies" within the business.
The restructuring occurs despite strong financial results for ServiceNow. The company beat expectations in its first-quarter 2026 earnings and raised its full-year subscription revenue guidance, showcasing continued growth.