ServiceNow continues layoffs as it restructures around AI
The enterprise software giant is cutting hundreds of jobs while increasing investment in artificial intelligence skills, saying it needs “the right talent in the right roles.”
ServiceNow, one of the world’s largest enterprise software companies, has begun a round of layoffs affecting hundreds of employees as it restructures its workforce around the rapid shift toward artificial intelligence.
The exact number of employees affected remains unclear, as does the full scope of the cuts in different regions. However, the layoffs have also impacted ServiceNow’s Israeli operations, where some employees have been dismissed.
“ServiceNow is committed to having the right talent in the right roles, and that means making necessary changes to how we are structured,” the company said in response to questions about the layoffs.
“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.”
The layoffs come shortly after ServiceNow sought to convince investors that it is positioned to benefit from the AI revolution rather than be disrupted by it.
In last week's quarterly earnings report, the company emphasized that AI is becoming central to its strategy, alongside cybersecurity and workflow automation. CEO Bill McDermott repeatedly pointed to the company’s $7.75 billion acquisition of Israeli cybersecurity company Armis as a key part of its ambition to become the control layer for enterprise AI.
ServiceNow reported second-quarter subscription revenue of $3.88 billion, ahead of Wall Street expectations, and raised its annual subscription revenue forecast for the second time this year. Its AI business surpassed $1 billion in annual contract value, according to the company.
Over the years, enterprise automation giant ServiceNow has made seven acquisitions of companies with ties to Israel, with a cumulative deal volume of more than $8 billion. The bulk of this amount is attributed to the April 2026 acquisition of cybersecurity company Armis for approximately $7.75 billion in cash.
In addition to Armis, ServiceNow acquired Traceloop in March 2026 in a deal valued at $60-80 million, and Pyramid Analytics in February 2026 for several hundred million dollars. Previously, it acquired Neebula in 2014 for about $100 million, SkyGiraffe in 2017, Appsee in 2019, and Cloudcraft, an American company with Israeli roots, in 2022. The most recent deal came earlier this month when it acquired ai.work for tens of millions of dollars.
