ServiceNow's Third Layoff Round This Year; Severance Costs Hit $167M in Nine Months
thedealdirector · x · 2026-11-06
ServiceNow is conducting its third round of layoffs this year, with employees in the US, UK, and India notified, per CTech and NowBen. The company hasn't disclosed how many roles are cut.
- Severance and related costs hit $167M in the first nine months of 2026, up from $53M a year earlier; $87M in Q3 alone
- The stock fell 27% after Q3 guidance missed, and is down 35% from Oct. 23 to Nov. 5
- The company still aims to end 2026 with roughly the same headcount while hiring AI-focused roles
The poster adds that ServiceNow is clawing back sales commissions to cut costs and started with enterprise reps, so lower-tier reps temporarily out-earn everyone else. An attached Glassdoor review from an enterprise account manager says commissions are capped and top salespeople are leaving.
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