What ServiceNow Employees Should Know About Their 2026 Severance Package

When a company eliminates hundreds of jobs at once, federal and state laws create a web of protections that most workers never think about until the email lands. The federal WARN Act can require 60 days of advance notice, and if notice was short, affected employees may be entitled to back pay and benefits for each day of the violation, up to 60 days. The Older Workers Benefit Protection Act sets hard deadlines for reviewing any severance agreement that asks you to waive age-discrimination claims. And the state where you work may layer on stricter notice rules, different unemployment interactions, or both. Knowing these timelines is the difference between signing too fast and leaving money on the table.

To see what these rules look like in practice, take Priya, a senior solutions consultant at ServiceNow earning $155,000 a year. Priya is 44, based in Santa Clara, and received her layoff notice on June 6, 2026. She has a severance agreement on her kitchen counter and 45 days to decide. Every worked example below follows Priya through the math.

What did ServiceNow actually announce?

On June 6, 2026, ServiceNow disclosed the elimination of approximately 300 roles. The layoff was reported on Crunchbase's running tech-layoff tracker. [1] ServiceNow has not publicly disclosed the percentage of its workforce affected, the specific offices impacted, or the exact terms of its severance packages. Because the company has not filed (or has not yet made public) an SEC Form 8-K Item 2.05 restructuring disclosure, the Crunchbase report and state WARN filings remain the primary public records.

If you are an affected employee, the most reliable source of detail is the separation agreement and WARN notice (if any) you received directly from ServiceNow's People team.

Does the federal WARN Act apply to a 300-person layoff?

The Worker Adjustment and Retraining Notification Act requires employers with 100 or more full-time employees to give 60 calendar days' written notice before a "plant closing" or "mass layoff." [2] A mass layoff is triggered when 500 or more workers lose their jobs at a single site, or when 50 to 499 workers are laid off and that group constitutes at least 33% of the site's workforce. [2]

ServiceNow employs well over 100 people, satisfying the employer-size threshold. Whether the 300 affected roles clear the site-level trigger depends on how many of those cuts fall at a single "site of employment." If 300 cuts hit one campus (Santa Clara headquarters, for instance), the threshold is met because 300 exceeds the 50-worker floor and likely exceeds 33% of that location's active headcount. If the cuts are spread thinly across dozens of offices, no single site may trip the trigger.

When an employer fails to provide the required 60-day notice, affected employees are entitled to back pay and benefits for each day of the violation, up to 60 days, calculated at the higher of their average regular rate over the last three years or their final regular rate. [3] The employer may also owe a civil penalty of up to $500 per day to the local government where the site is located. [3]

Use our WARN Act calculator to estimate potential back-pay exposure based on your site headcount and notice date.

Which state mini-WARN laws add extra protection?

Several states impose stricter layoff-notice requirements than federal law. ServiceNow has significant operations in California and maintains offices in other states with mini-WARN statutes. The table below summarizes the states most likely relevant to ServiceNow employees.

California's WARN Act applies to employers with 75 or more full-time or part-time workers and covers mass layoffs of 50 or more employees at a single site within a 30-day period. [4] Priya's Santa Clara office almost certainly falls under this statute. New York's WARN Act requires 90 days' notice (not 60) and kicks in at a lower employer threshold of 50 employees. [5]

For a fuller comparison of state-by-state rules, see our state severance guides.

How does OWBPA affect the severance timeline for workers 40 and older?

The Older Workers Benefit Protection Act, codified at 29 U.S.C. § 626(f), sets specific requirements for any severance agreement that asks an employee to waive age-discrimination claims under the ADEA. [6] If the waiver is part of an "exit incentive or other employment termination program offered to a group," the employer must give each worker at least 45 calendar days to consider the agreement. [7] If only one person is being terminated (not part of a group program), the review period is 21 days. [6]

A 300-person layoff is a group termination. Every affected worker 40 or older should receive the 45-day consideration period, plus a non-waivable 7-day revocation period after signing. [6] The employer must also disclose, in writing, the job titles and ages of all individuals eligible for and selected for the program, as well as those not selected, within the same "decisional unit." [7]

How does severance pay interact with unemployment insurance?

The answer depends on the state. ServiceNow workers in California and New York face different rules.

California. The Employment Development Department (EDD) treats severance pay as wages if allocated to a specific period. A lump-sum payment not tied to a particular timeframe generally does not delay unemployment benefits, but EDD makes the final determination case by case. [4]

New York. The New York Department of Labor does not reduce unemployment benefits because of severance pay. [8] Severance is not considered "remuneration" that offsets weekly benefits. [9] Priya's colleague based in New York can file for unemployment the week after separation and collect full benefits even while receiving severance checks.

Filing promptly is important. Most states impose a one-week unpaid waiting period before benefits begin, so delaying the claim only pushes the first check further out. For a quick estimate of your post-layoff income, try the severance and tax calculator.

What terms can a departing ServiceNow employee negotiate?

A severance agreement is a contract, not a decree. ServiceNow has not disclosed its standard terms, but the most common negotiation levers in tech severance agreements include:

Cash multiple. The initial offer is a starting point. If you held a senior role or have institutional knowledge of ongoing deals, you have room to ask for a higher multiplier (e.g., moving from 8 weeks to 12 weeks). Low confidence

COBRA and healthcare continuation. Federal COBRA coverage lets you keep your group health plan for up to 18 months, but you pay the full premium (employer + employee share) plus a 2% administrative fee. [10] Negotiating for the employer to cover COBRA premiums for 3 to 6 months post-separation materially reduces out-of-pocket costs.

Equity treatment. If you hold unvested RSUs with upcoming vesting dates, ask whether the separation agreement accelerates any portion of the unvested grant. Standard language typically forfeits unvested equity on the last day of employment, but acceleration of one additional vest is a common concession in tech layoffs. Low confidence

Outplacement and reference language. A neutral-reference clause (confirming title and dates of employment) is standard. Ask for a written agreement that your manager or a designated HR contact will provide a positive reference. The EEOC's guidance on severance waivers emphasizes that employees should understand every term before signing. [11]

Non-compete and non-solicit scope. California law generally voids post-employment non-competes. If you are based in a state that enforces them, narrowing the scope or duration is a legitimate ask during severance negotiations.

For more on structuring your counter-ask, see our guide on how to negotiate severance.

What should ServiceNow employees do right now?

If you are inside the consideration window, here is a concrete checklist:

1. Read the agreement slowly, twice. Circle every clause that limits your future actions: non-compete, non-solicit, non-disparagement, cooperation, and IP assignment.
2. Verify the OWBPA disclosures. If you are 40 or older, confirm that the agreement includes the decisional-unit data (job titles, ages of selected and non-selected employees). If it does not, the age-claim waiver is likely unenforceable. [7]
3. Check your state's WARN notice. Compare the date on your WARN notice to your last day. If the gap is less than 60 days (or 90 days in New York), you may be owed back pay. [2] California's EDD maintains a public database of WARN notices. [4]
4. File for unemployment immediately. Do not wait for severance to run out. In New York, severance does not reduce UI benefits. [8] In California, filing early preserves your claim date even if benefits are temporarily delayed.
5. Consult an employment attorney. Many offer free 30-minute consultations for severance review. The EEOC recommends that employees consult a lawyer before signing any waiver of discrimination claims. [11]
6. Run the numbers. Use the layoff calculator to estimate your total separation value, including severance, WARN back pay, COBRA costs, and unemployment benefits.

For a deeper look at how severance pay is taxed, read our severance tax guide.

Frequently asked questions

Does ServiceNow have to pay 60 days of back pay if it skipped WARN notice?

Under 29 U.S.C. § 2102, employers that fail to provide the required 60-day written notice owe affected employees back pay and benefits for each day of the violation, up to 60 days. [3] The obligation applies per covered site. Whether ServiceNow owes back pay depends on whether the layoff triggered the site-level thresholds (50+ employees constituting 33% of the site, or 500+ employees). Employees who did not receive written WARN notice at least 60 days before their termination date should consult an employment attorney about potential claims.

How long do workers over 40 have to review the severance agreement?

The Older Workers Benefit Protection Act, 29 U.S.C. § 626(f), requires a 45-day review period when the waiver is part of a group termination program. [6] After signing, the employee has an additional 7 days to revoke the agreement. The employer cannot shorten either period. A 300-person layoff qualifies as a group program, so every affected worker 40 or older at ServiceNow is entitled to 45 plus 7 days. [7]

Can I collect unemployment while receiving ServiceNow severance pay?

In New York, yes. The NY Department of Labor does not treat severance as remuneration, so it does not reduce weekly unemployment benefits. [8] In California, the answer depends on how the severance is structured. A lump sum not allocated to a specific period typically does not delay benefits, but the EDD makes the final call. [4] File your claim promptly regardless of state; waiting only delays the start of the one-week unpaid waiting period most states impose.

What should I check before signing the severance agreement?

The EEOC recommends that employees review every waiver of discrimination claims carefully and consult a lawyer before signing. [11] Confirm that the agreement includes OWBPA-required disclosures if you are 40 or older (ages and titles of selected/non-selected employees). [7] Verify that the WARN notice timeline matches the 60-day (federal) or 90-day (New York) requirement. [5] Check whether the non-compete, non-solicit, and non-disparagement clauses are enforceable in your state. California generally voids post-employment non-competes.

Is ServiceNow severance taxable?

Yes. The IRS treats severance pay as supplemental wages, subject to federal income tax withholding at a flat 22% rate for amounts up to $1 million. FICA taxes (Social Security at 6.2% and Medicare at 1.45%) also apply. State income tax varies. For a personalized estimate, use our severance tax calculator. Low confidence

Who qualifies for COBRA after a ServiceNow layoff?

COBRA continuation coverage is available to employees (and their dependents) who were enrolled in a group health plan on the day before the qualifying event (job loss). [10] The employee can maintain coverage for up to 18 months but pays the full premium plus a 2% administrative fee. ServiceNow must provide a COBRA election notice within 14 days of the plan administrator receiving notice of the qualifying event. Negotiating for employer-paid COBRA premiums during the severance discussion can save thousands of dollars.

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