ServiceNow is cutting jobs across the United States as part of a wider restructuring push, with fresh reductions confirmed at its San Diego offices on July 28, 2026, according to California WARN filings. The enterprise software company, led by CEO Bill McDermott, is trimming staff even after posting strong quarterly revenue, shifting resources toward artificial intelligence roles instead. The new cuts affect employees who had already made it through earlier rounds this year. Current staff and enterprise customers are now watching closely to see how far the ServiceNow restructuring goes, and whether other regional offices face similar reductions in the months ahead.
San Diego Bears the Brunt of the Latest Cuts
California WARN Act records show the company has filed two notices in 2026, affecting 117 workers combined, with more than half concentrated at its San Diego campus. Those cuts targeted senior roles, including directors, senior managers, staff engineers, and senior consultants based at the Eastgate Mall office. Separations tied to the earlier filing were scheduled to begin August 17, 2026. Workers who survived that first round are now facing a second wave of eliminations, according to local reporting.
WARN Notices Detail ServiceNow Job Losses
The filings list Santa Clara, the company’s headquarters city, alongside San Diego as the two hardest-hit locations this year. State labor records classify every filing as a layoff rather than a facility closure. That distinction matters, since layoff status generally preserves eligibility for standard unemployment benefits and rapid-response retraining programs. No nationwide total beyond the California filings has been disclosed publicly.
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A Pattern of Quiet Restructuring at ServiceNow
For years, McDermott publicly promised the company would avoid the mass layoffs common elsewhere in tech, insisting it would keep hiring even during downturns. That stance shifted in 2026. On an April 22 earnings call, McDermott told investors the plan was to exit the year with roughly the same headcount it started with, a framing that left room for cuts offset by hiring elsewhere.
ServiceNow Cuts Quality Engineering First
The clearest signal came in April, when ServiceNow eliminated its dedicated quality-engineering function, affecting several hundred employees. Workers in that group were offered a choice: move into open developer roles or accept severance. Recruiters tracking the platform say the move lines up with expanding Now Assist automation tools, which increasingly handle testing tasks once done by human engineers. The elimination is widely viewed as the clearest early marker of where future cuts may land next.
What ServiceNow Is Saying
A spokesperson said ServiceNow continuously evaluates its organization to keep the right talent in the right roles. The spokesperson added that the company is driving efficiencies across the business while actively hiring for AI-focused skills, managing headcount with discipline to end the year where it started. That language closely echoes McDermott’s earlier comments to investors.
AI Efficiency Driving Cuts Across the Software Industry
The restructuring fits a broader pattern among enterprise software firms leaning on generative AI to hold down headcount growth. According to Layoffs. fyi, more than 124,000 tech employees at over 240 companies have lost jobs so far in 2026. The reductions here are smaller than some rivals have announced, but analysts say the attrition-plus-AI approach could prove just as disruptive over time.
Several forces are reshaping headcount at ServiceNow and across the sector this year:
- Reduced backfilling of roles vacated through normal employee turnover
- Expanded use of AI agents for testing, support, and administrative work
- Continued hiring for AI-specific engineering and sales positions
- Integration of recently acquired teams, including cybersecurity firm Armis
- Investor pressure to show margin improvement alongside revenue growth
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Financial Backdrop Behind the Job Cuts
The layoffs come despite solid results. The company reported roughly $3.67 billion in subscription revenue for the first quarter of 2026 and posted a quarterly profit. Its 2025 annual filing listed about 29,187 full-time employees worldwide, meaning even a few hundred cuts represent a small share of the total workforce. That scale is part of why the reductions have unfolded through quiet filings rather than one large public announcement.
Impact on Enterprise Customers and the Product Roadmap
Businesses using the company’s IT service management and workflow automation tools have not reported service disruptions tied to the cuts. Now Assist remains central to the 2026 product roadmap, and open AI engineering roles suggest budget is being redirected rather than simply reduced. For enterprise buyers, the restructuring signals where future product development is likely to concentrate.
What Affected Workers Can Do Next
Employees named in the WARN filings stay on payroll with full pay and benefits until their separation date. They can use that notice period to file for unemployment insurance ahead of their last day, review COBRA health coverage options, and reach out to local job centers for career counseling and retraining vouchers. Rapid Response services, aimed specifically at WARN-affected workers, remain available across California. ServiceNow has also pointed some departing staff toward internal AI-focused openings before their separation dates arrive.
