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News / Career

Exclusive: More ServiceNow Layoffs After Its Worst Stock Drop in History

By Sasha Semjonova

ServiceNow is conducting further global layoffs, allegedly impacting teams across CSM, Marketing, Media, CEG (Customer Excellence Group), and more. So far, it is understood that employees in the UK, the US, and India have been affected. 

This comes a week after ServiceNow CEO Bill McDermott described a smaller workforce as “a gorgeous situation” and just days after the ITSM giant announced its Q3 2026 earnings, sending its stock plunging over 20%. 

Another Round of Layoffs 

This particular round of layoffs has reportedly impacted employees across CSM, Marketing, Media, and CEG (Customer Excellence Group) teams, with many affected employees having been informed yesterday. These layoffs affected the UK, the US, and India. Rumors have been circulating on Reddit, with a number of people claiming to be laid-off staff.

ServiceNow told NowBen that it is making “necessary changes to how [it is] structured.”

“We are driving efficiencies across the business, actively investing in and hiring for AI-focused skills, and managing headcount with discipline to end 2026 where we started, as we shared earlier this year. That’s how we grow sustainably and win.”

It is not yet clear how many employees have been laid off or why this specific layoff round has occurred. These layoffs mark ServiceNow’s third layoff round this year, after the company admitted to cutting headcount as part of a restructuring effort. 

READ MORE: ServiceNow Confirms Continued Global Layoffs

Winning Over Wall Street 

These layoffs come a week after Bill McDermott described a smaller workforce as a “gorgeous situation” last week, after he was questioned about the company’s declining headcount, particularly across sales and marketing and in research and development. 

He also described how AI was able to contribute to “efficiency gains” for the company, despite also telling people to “relax” amid growing concerns about AI replacing traditional software. 

The layoffs also came after ServiceNow announced its Q3 2026 earnings, delivering strong results overall but guiding its cRPO growth to 18.5% in the fourth quarter in constant currency, while Wall Street had expected 19.8%. This sent its stock plummeting 27%, marking the worst day for the stock in the company’s history. 

READ MORE: ServiceNow’s Stock Plunges More Than 20% After Q3 2026 Earnings

Final Thoughts

NowBen understands that headcount at ServiceNow started at around 29,000 this year and currently sits at around 30,000.

According to Layoffs.fyi, 142,004 tech employees across 346 companies have been laid off so far in 2026. 

NowBen will monitor the situation and provide updates on the layoffs as they come.

The Author

Sasha Semjonova

Sasha is a Reporter at NowBen.

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