--- title: "ServiceNow cut 214 San Diego jobs in 2026 as GAAP operating income fell 55%; earnings October 28" description: "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." publisher: "The Inference" section: "Labor" published: 2026-10-21T14:45:59.509Z modified: 2026-10-21T14:45:59.509Z canonical: https://theinference.org/article/servicenow-cut-214-san-diego-jobs-in-2026-as-gaap-operating-income-fell-55-earnings-october-28 language: en keywords: "ServiceNow, Layoffs, Earnings, Software, California, AI" --- # 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. [ServiceNow](https://theinference.org/markets/companies/servicenow)'s San Diego office lost 18 more jobs, all in sales, under [a California WARN notice reported October 19](https://www.sandiegouniontribune.com/2026/10/19/servicenow-cuts-san-diego-sales-jobs-in-third-round-of-layoffs-this-year/), 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](https://theinference.org/article/servicenow-built-a-new-front-door-in-three-months-and-the-2-85-billion-one-went-unmentioned), has lost both of its senior leaders [1][2]. ## 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](https://theinference.org/markets/people/bill-mcdermott) has said headcount will stay flat after the acquisitions of [Moveworks](https://theinference.org/markets/companies/moveworks), 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](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001373715) [3]. ServiceNow's own answer is confidence, not caution: at the July earnings call, chief financial officer [Gina Mastantuono](https://theinference.org/markets/people/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](https://theinference.org/article/servicenow-said-no-to-buying-decagon-and-got-paid-5-for-the-answer) [4]. *Chart: **Revenue kept compounding; GAAP operating income fell 55% in the June quarter** Column chart of ServiceNow quarterly revenue rising steadily from $2.6 billion in Q1 2024 to $3.99 billion in Q2 2026, while GAAP operating income falls from $0.5 billion in Q1 2026 to $0.16 billion in Q2 2026.* *ServiceNow quarterly revenue and GAAP operating income, US$ billions, calendar quarters, from its SEC filings, retrieved October 21, 2026. Source: 3. [3]* ## 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](https://www.executivebiz.com/articles/starburst-kerman-lau-cfo-appointment) [5], and marketing chief Oksaman Patel's [move to Atomicwork was announced October 14](https://www.tmcnet.com/usubmit/2026/10/14/10463213.htm) [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 [3][4]. ## Takeaway ServiceNow's third San Diego layoff round of 2026, 18 more sales jobs in a WARN notice dated October 19, lands eight days before an earnings print that must show the operating leverage the 214 cuts are meant to restore. ## Sources 1. [San Diego Union-Tribune, ServiceNow cuts San Diego sales jobs in third round of layoffs this year, 19 October 2026](https://www.sandiegouniontribune.com/2026/10/19/servicenow-cuts-san-diego-sales-jobs-in-third-round-of-layoffs-this-year/) 2. [The Inference, ServiceNow built a new front door in three months, and the $2.85 billion one went unmentioned, 2 October 2026](https://theinference.org/article/servicenow-built-a-new-front-door-in-three-months-and-the-2-85-billion-one-went-unmentioned) 3. [ServiceNow, quarterly figures from its SEC filings, retrieved 21 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001373715) 4. [The Inference, ServiceNow said no to buying Decagon and got paid 5% for the answer, 17 October 2026](https://theinference.org/article/servicenow-said-no-to-buying-decagon-and-got-paid-5-for-the-answer) 5. [ExecutiveBiz, Starburst Hires Former Moveworks CFO Kerman Lau, 19 October 2026](https://www.executivebiz.com/articles/starburst-kerman-lau-cfo-appointment) 6. [TMCnet, Atomicwork Taps Former Moveworks and Sedai Marketing Leader to Lead Global Marketing, 14 October 2026](https://www.tmcnet.com/usubmit/2026/10/14/10463213.htm) --- ServiceNow cut 214 San Diego jobs in 2026 as GAAP operating income fell 55%; earnings October 28 — The Inference. Canonical: https://theinference.org/article/servicenow-cut-214-san-diego-jobs-in-2026-as-gaap-operating-income-fell-55-earnings-october-28