ServiceNow shares traded lower on September 28, 2026, as the effective date arrived for the previously announced layoff of 287 employees in the company’s California offices. The cuts were first disclosed in a WARN Act notice in late July 2026. They are part of ServiceNow’s broader plan to keep headcount flat while shifting resources toward artificial intelligence roles.
The decline came despite positive news. Security company Reco announced a partnership with ServiceNow to improve security for AI agents on its platform. An Oppenheimer analyst also named ServiceNow a top AI software pick on September 28, citing its strong customer base and exposure to AI growth.
One report attributed the stock’s 3.9% morning decline to the layoff news.