Currently, Big Tech companies are implementing rounds of layoffs as they face significant economic headwinds after a hiring spree during the pandemic. Canalys predicts that the top 25 tech vendors will cut their collective headcount by 9% worldwide in 2023, totaling 190,000 people. However, ServiceNow, unlike other companies, has pledged not to lay off any workers in 2023. The company claims that it did not participate in the COVID hiring frenzy seen among other software vendors and has always been disciplined with its financial decisions, enabling it to be in a strong, sustainable position that puts people first. Additionally, the company runs many of its HR tech capabilities on its Now Platform, which allows it to stay cost-effective and agile. It has also created a unique culture that is purpose-driven, leading to Glassdoor ranking it ninth out of the top 100 “Best Places to Work” lists for 2023. The company’s approach appears to be benefiting the bottom line, with strong Q4 subscription revenue growth and operating margin exceeding guidance. The company’s CMO suggests that ServiceNow is focused on creating value positively and helping people see that the current environment is not as bad as it may seem.
In contrast to other tech companies, ServiceNow has prioritized growth and profitability over “growth at all costs” and has been disciplined with its financial decisions. This approach has allowed the company to build a strong, sustainable business that values its employees and puts people first. ServiceNow has also leveraged its Now Platform to streamline HR processes and stay cost-effective, saving time and money.
Moreover, the company has recently launched FrED, a learning experience platform that enables employees to build their skills for the future. This investment in its workforce has helped ServiceNow create a unique culture that is purpose-driven, promoting employee well-being, and fulfilling the company’s goals together. These efforts have been recognized by Glassdoor, which ranked ServiceNow as one of the best places to work in 2023.
ServiceNow’s decision not to lay off workers in 2023 is a bold move, especially given the current economic climate. However, the company’s focus on growth, profitability, and purpose-driven culture has positioned it well to weather the storm. By prioritizing people and investing in its workforce, ServiceNow is demonstrating that it is possible to create a successful business that benefits employees, customers, and shareholders alike.
Overall, ServiceNow’s commitment to not laying off workers in 2023 is grounded in a combination of strategic planning, financial discipline, and a strong company culture that values employees. The company’s investments in learning and development, HR technology, and employee well-being have helped it build a sustainable business model that is resilient in the face of economic headwinds.
While other tech companies may be making short-term decisions to reduce costs, ServiceNow’s long-term approach emphasizes the value of its people and the importance of purpose-driven leadership. As the company continues to grow and expand, its decision to avoid layoffs in 2023 may prove to be a wise one, helping it retain top talent, maintain its competitive edge, and continue to deliver value to its customers and shareholders.