Exclusive: ServiceNow to cut up to 1K jobs as part of planned rightsizing

Investing.com -- ServiceNow (NYSE: NOW) could cut up to 1,000 roles this year as part of a planned rightsizing following a string of acquisitions, people familiar with the matter told Investing.com.

The reductions are being implemented over several months as the enterprise software company integrates Moveworks, Veza and Armis, with the goal of ending 2026 at roughly the same headcount it began the year with.

ServiceNow entered 2026 with approximately 29,000 employees and currently has around 30,000. This suggests cuts will total around 1,000 employees.

Reports circulating on social channels of large cuts of between 3,000 and 5,000 have overstated the scale of the changes, the people said.

The company’s position is consistent with commitments CEO Bill McDermott made on ServiceNow’s past two earnings calls, where he told investors ServiceNow would exit the year at the same headcount it started with, even after completing three major acquisitions.

"We’re a growth company, and we’re going to grow. We’re going to grow fast," McDermott said on the company’s second-quarter earnings call in July. He added that ServiceNow would "complete this cycle of 2026 and start 2027 with the exact same headcount before we did the acquisitions," and said the integration work would allow operating margins and free cash flow margins to scale.

Earlier this week, Business Insider reported that ServiceNow has been cutting hundreds of jobs as part of a global restructuring, with a company spokesperson quoted as saying a "low single-digit" percentage of total headcount has been affected across several months of 2026.

Rumors circulating on workplace platforms such as Blind had previously suggested the cuts could run as high as 3,000.

ServiceNow’s stock has fallen over 24% year-to-date on fears AI tools could replace traditional software. With its second quarter results last week, the company looked to dispel those fears. The company beat the high end of its guidance and raised its full-year subscription revenue outlook.

“The company’s sterling fundamentals have us operating to the Rule of 56, well on our way to the Rule of 60,” McDermott said with the results. “With our AI Control Tower as the market standard, agentic deployments of ServiceNow AI increased ninefold in just nine months. Our $29 billion in remaining performance obligations is fueled by longer customer commitments and skyrocketing demand from our partner ecosystem.”

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