Software giant Amdocs is preparing for another wave of layoffs, targeting 5%-10% of its workforce, which translates to 1,500-3,000 employees in Israel and worldwide. It’s estimated the company will begin hearings in Israel in the coming weeks.
Currently, the company employs over 29,000 people worldwide, including 5,000 workers in Israel, and it’s expected many of the layoffs will take place in the country. Amdocs is traded on NASDAQ with a market cap of $9.7 billion.
This isn’t the company's first wave of layoffs: in the second half of 2023, it laid off 2,000 employees, 250 of whom were from Israel. In the first half of 2023, it laid off another 700 employees, 100 of whom live in the country.
In the second quarter of 2024, the company saw record revenues of $1.25 billion, an increase of 2% compared to the second quarter of 2023. The company also reported a record order backlog for the next 12 months, amounting to $4.23 billion in the U.S., marking a 3% increase year-on-year.
The company expects an increase of about 1.6%-3.6% in reported revenues and an increase of 1.7%-3.7% in revenues excluding the impact of exchange rate fluctuations at the end of the 2024 fiscal year.
"As a global leader in its field, Amdocs continuously evaluates the opportunities and challenges in its business environment and adjusts its operations accordingly, while investing in innovation and leveraging and implementing cutting-edge technologies,” the company said in a statement.
“As a result, the company is considering steps aimed at maintaining its leadership and resilience and ensuring its competitive capability to appropriately meet the changing market needs. Israel continues to be among Amdocs' leading development and innovation centers worldwide.”