ServiceNow layoffs hit UK, US and India as company restructures workforce

ServiceNow has launched another round of global layoffs, with employees in India, the UK and the US affected, according to CTech. The company has not disclosed the number of roles being eliminated as it reshapes operations around efficiency and artificial intelligence.

The latest cuts come as the enterprise software company pursues a workforce strategy focused on AI-driven efficiencies and investment in specialised skills. ServiceNow said it was making structural changes while maintaining its previously stated goal of ending 2026 with the same overall headcount it began the year with.

In a statement quoted by CTech, ServiceNow said: "We are making necessary changes to how we are 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."

Severance costs reflect the scale of workforce changes

ServiceNow's latest quarterly filing provides an indication of the financial impact of its ongoing workforce restructuring. The company reported higher employee severance and related costs during the first nine months of 2026 compared with the corresponding period last year.

Key figures from the filing include:

• $87 million in employee severance and related costs during the third quarter of 2026, compared with $24 million a year earlier.

• $167 million in severance and related costs during the first nine months of 2026, against $53 million in the same period last year.

• $153 million in cash payments towards severance during the first nine months of 2026.

• $34 million in severance-related reserves as of 30 September 2026.

The filing describes the programme as an effort to optimise the workforce through AI-driven efficiencies and investment in talent across strategic areas. ServiceNow expects the programme to be substantially completed during 2026.

The company recognises termination costs when employees receive notification, according to its filing. Consequently, costs associated with notifications from the latest round would normally be reflected in its fourth-quarter results.

AI efficiencies reshape workforce priorities

ServiceNow's leadership has previously discussed the relationship between artificial intelligence adoption and employee numbers. During the company's third-quarter earnings call, CEO Bill McDermott described a smaller workforce as a "gorgeous situation" and said headcount had "slightly declined".

CFO Gina Mastantuono also said sales operations headcount was "down significantly", while the number of quota-carrying salespeople had increased by double digits.

She linked the slower pace of hiring to productivity improvements from AI. ServiceNow has said these efficiencies generate more than $1 billion in annualised gains.

The company's approach reflects a shift in workforce allocation, with greater emphasis on AI-focused roles and selected strategic capabilities. However, the latest announcement does not specify which functions or employee categories have been affected across India, the UK and the US.

Share decline adds pressure amid restructuring

The layoffs come during a period of weakness in ServiceNow's stock performance. According to CTech, the company's shares have fallen more than 30% since the beginning of 2026.

The stock also declined 35% between 23 October and 5 November, including a fall of approximately 27% the day after its third-quarter results.

ServiceNow had forecast fourth-quarter constant-currency current remaining performance obligations growth of 18.5%, below analysts' expectation of 19.8%, CTech reported.

The company had already undertaken workforce reductions earlier in the year. In July, layoffs affected hundreds of employees, including staff in Israel, with ServiceNow reiterating its intention to finish 2026 at its starting headcount.

The latest round signals the continuation of this restructuring programme. The number of affected employees and the precise impact across individual markets remain undisclosed, while the company continues to prioritise AI investment and operational efficiencies.