ServiceNow Vows ‘No Layoffs’; Stock Falls on Sales Miss (1)

ServiceNow Inc. declined in extended trading after subscription sales fell short of analysts’ estimates. The software maker also pledged it wouldn’t cut jobs in 2023 despite workforce reductions at many technology companies.

ServiceNow will have “absolutely no layoffs in 2023,” Chief Executive Officer Bill McDermott said in an interview. Last July, McDermott was one of the first software executives to say that customers were reluctant to commit to purchases. Since then, however, the company has continued to hire and now has better sales coverage across industries, he said.

Fourth-quarter subscription revenue increased 22% to $1.86 billion, slightly below estimates of ...