ServiceNow cut 214 San Diego jobs in 2026 as GAAP operating income fell 55%; earnings October 28
California WARN filings show a third 2026 layoff round at ServiceNow, 18 sales roles cut, 214 jobs gone at one office this year, days before an earnings print that has to fund the margin the cuts are meant to restore.
Vincent Jiang · 2 min read
ServiceNow's+2.27% — ServiceNow, up 2.27 percent today San Diego office lost 18 more jobs, all in sales, under a California WARN notice reported October 19, the third layoff round this year and the 214th position cut at that office in 2026 1. The notice lands eight days before the company's third-quarter earnings print, and the same ten months in which the $2.85 billion assistant ServiceNow bought, Moveworks, has lost both of its senior leaders 12.
The headcount math is on the record
The rounds stack up: 63 jobs cut in June, 133 at the end of July, more than half of them senior or director level, and now 18 sales roles 1. The arithmetic sits behind a stated strategy. Chief executive Bill McDermott has said headcount will stay flat after the acquisitions of Moveworks$2.85B — Moveworks, private, latest valuation $2.85B, Veza and Armis, which added thousands of employees, and that AI will be used to boost efficiency 1.
That the 214 San Diego cuts are the cost of the deals is a reading of that arithmetic, not something the filings state; the filings state only the numbers 1.
What the cuts are meant to fix
The June quarter shows the strain: revenue rose 24% to $3.99 billion while GAAP operating income fell 55% to $162 million, from $358 million a year earlier 3. ServiceNow's own answer is confidence, not caution: at the July earnings call, chief financial officer Gina Mastantuono called it an outstanding quarter with broad-based demand and operating leverage 1. The tape has agreed so far, paying the stock a 5% gain on October 15 after the company said it will not buy AI agent maker Decagon 4.
Revenue kept compounding; GAAP operating income fell 55% in the June quarter
- Revenue
- GAAP operating income
Data
| Revenue | GAAP operating income | |
|---|---|---|
| Q1 '24 | 2.6 | 0.33 |
| Q2 '24 | 2.63 | 0.24 |
| Q3 '24 | 2.8 | 0.42 |
| Q4 '24 | 2.96 | 0.37 |
| Q1 '25 | 3.09 | 0.45 |
| Q2 '25 | 3.22 | 0.36 |
| Q3 '25 | 3.41 | 0.57 |
| Q4 '25 | 3.57 | 0.44 |
| Q1 '26 | 3.77 | 0.5 |
| Q2 '26 | 3.99 | 0.16 |
What October 28 decides
ServiceNow reports on October 28, with consensus at $4.09 billion of revenue and $1.02 of adjusted earnings per share 4. Meanwhile the Moveworks bench is dispersing: CFO Kerman Lau surfaced as Starburst's CFO in early October 5, and marketing chief Oksaman Patel's move to Atomicwork was announced October 14 6. Neither statement gives a reason for leaving. If operating income stays near $162 million, the margin the market has already paid for remains a promise the documents do not yet carry 34.
The daily newsletter
