ServiceNow Cuts 63 San Diego Jobs as AI Pressure Undercuts CEO's No-Layoff Pledge
Updated
Updated · The San Diego Union-Tribune · Jun 12
ServiceNow Cuts 63 San Diego Jobs as AI Pressure Undercuts CEO's No-Layoff Pledge
1 articles · Updated · The San Diego Union-Tribune · Jun 12
Summary
63 San Diego employees and dozens more across California received layoff notices from ServiceNow, with the cuts set to take effect by Aug. 17.
The reductions hit mostly senior middle-market sales and consulting roles, along with functions exposed to AI automation such as solution consulting, training, sales enablement and customer support.
The move reverses CEO Bill McDermott's April pledge to keep headcount steady into early 2027 by using attrition and AI-driven productivity gains instead of direct job cuts.
ServiceNow made the cuts despite reporting $3.77 billion in first-quarter revenue, up 22%, and $469 million in profit, as investors pressed management on when AI would deliver faster growth.
That pressure has weighed on the stock: shares fell 14% after April earnings guidance trimmed margin expectations to 81.5%, and closed Friday at $102.15 versus a 52-week high of $211.48.