ServiceNow has been cutting several hundred jobs as part of a global restructuring, the latest sign of pressure on the software industry.

A ServiceNow spokesperson said a “low-single-digit” percentage of the company’s total staff has been affected by the cuts, which have occurred for several months this year.

ServiceNow ended 2025 with 29,187 employees, so the cuts will likely total several hundred jobs.

CEO Bill McDermott said earlier this year that ServiceNow would end 2026 with the same number of employees it started the year with. It has also been pushing staff to reorganize their workflows to adopt new technologies and set an example for ServiceNow customers on how to be more efficient.

ServiceNow also made some major acquisitions last year, such as Armis and Veza, so the company is likely streamlining its operations by integrating these new businesses.

A ServiceNow employee told Business Insider on Tuesday that the cuts were described internally as a global restructuring and said it had been a “very difficult day.” This person asked not to be identified because they are dealing with sensitive issues.

Investors have criticized some software stocks over the past year over concerns that AI will disrupt the sector by reducing demand and making it easier for companies to develop their own software tools.

ServiceNow, like many enterprise software companies, is investing heavily in AI as it reshapes parts of its business.

Last week, ServiceNow reported quarterly results that met or beat Wall Street expectations and raised its full-year subscription revenue guidance, even as investors continue to debate how AI will reshape the software industry.

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