ServiceNow cuts several hundred roles as CEO targets flat headcount in 2026

ServiceNow has cut several hundred jobs as part of a global restructuring programme, affecting a low single-digit percentage of its workforce over the past several months, according to Business Insider.

The workforce reduction comes as the enterprise software company streamlines operations, integrates recent acquisitions and increases investment in artificial intelligence. At the beginning of the year, CEO Bill McDermott said ServiceNow would end 2026 with the same headcount it started the year with, signalling a focus on workforce reshaping rather than broad expansion.

Restructuring affects hundreds of employees

A ServiceNow spokesperson told Business Insider that the restructuring has impacted a "low single-digit" percentage of the company's global workforce.

ServiceNow ended 2025 with 29,187 employees, meaning the reduction amounts to several hundred roles.

According to the report, the workforce changes have taken place over several months rather than through a single round of layoffs.

One employee, who spoke to Business Insider on condition of anonymity because of the sensitivity of the matter, described the process internally as a global restructuring and called it a "very tough day."

CEO focuses on efficiency rather than workforce growth

McDermott has previously indicated that ServiceNow does not expect its overall workforce to grow during 2026.

According to Business Insider, the chief executive told employees earlier this year that the company planned to finish the year with the same headcount it had at the beginning of 2026.

He has also encouraged employees to redesign workflows by embracing new technologies, positioning ServiceNow as an example for customers seeking to improve productivity through more efficient ways of working.

The approach reflects a broader operational shift across enterprise software companies as AI becomes more deeply embedded into business processes.

AI investment continues alongside business integration

The restructuring comes as ServiceNow continues to invest heavily in artificial intelligence while integrating businesses acquired over the past year.

According to Business Insider, the company recently completed acquisitions including:

• Armis
• Veza

The report said the restructuring is likely intended to streamline operations as these businesses are integrated into ServiceNow's existing organisation.

Software industry faces growing AI pressure

ServiceNow's workforce changes come against the backdrop of wider uncertainty across the software industry.

According to Business Insider, investors have become increasingly concerned that AI could reshape the sector by reducing demand for certain software products while making it easier for organisations to build their own software tools.

Many enterprise software companies are responding by increasing AI investment while reassessing organisational structures and operating models.

Strong financial performance despite restructuring

The workforce reduction follows a positive financial update from the company.

Last week, ServiceNow reported quarterly results that met or exceeded Wall Street expectations and raised its full-year subscription revenue guidance, according to Business Insider.

The results suggest the restructuring is taking place alongside continued business growth rather than in response to weakening financial performance.

As enterprise software companies continue to adapt to rapid advances in AI, ServiceNow's latest restructuring reflects an industry-wide effort to balance operational efficiency, technology investment and business integration while maintaining long-term growth plans.