Rumors of layoffs
There have been rumors circulating from people in SN that there will soon be a new large wave of layoffs. See the servicenow subreddit. This might be unfortunate, but from an investment standpoint, is this a good thing for the stock ?
Here's my list of pros and cons
##Pros
Layoffs = reduced SBC and reduced SG&A, so it could set up for an easier beat.
They still guided to 1.5B$ in AI Annual revenue, so I think there's no issue there.
They could be reducing the excessive head cost from covid.
##Cons
This could signal that the growth story isn't as great as the CEO says.
We're seeing a lot of layoffs in tech sector and it didn't bode well for the stock prices after.
Exemples : intc in july 2025, after layoff announcement, stock down 20%
Google in July 2026, same thing.