ServiceNow, a leading provider of cloud software, announced that Chief Operating Officer (COO) CJ Desai has resigned following an internal investigation. The investigation focused on the hiring of the former Chief Information Officer (CIO) of the U.S. Army and the procurement of government contracts.

The investigation conducted by the board revealed that the hiring of this person, whose name was not disclosed by the company, violated company policies. This person, who had been leading the company's public sector initiatives since 2023, has since left ServiceNow.

The investigation was prompted by a complaint indicating compliance issues related to the procurement process of a government contract. ServiceNow disclosed the investigation in its quarterly report to the US Securities and Exchange Commission (SEC) in May.

Desai, who also served as the company's president, resigned from all his positions with immediate effect. ServiceNow emphasized that the incident is an isolated case.

Chris Bedi, who has been with ServiceNow for over a decade, has been appointed Interim Chief Product Officer.

ServiceNow announced a leadership change after the company raised its annual forecast again. In the second quarter, revenue increased by 22 percent.

These developments underscore ServiceNow's efforts to achieve strong revenue growth and meet investor expectations despite internal challenges.