Israeli business systems company Amdocs (Nasdaq: DOX) is preparing for another major round of layoffs in which an estimated 5%-10% of the company’s workforce will be laid off, including employees in Israel. As of September 2023, Amdocs had 30,695 employees worldwide so that 1,500-3,000 employees are expected to receive dismissal notices, although the final number has not yet been set.
Last July, Amdocs implemented its second round of layoffs in 2023 and in total last year 2,700 employees were let go including 300 in Israel.
Amdocs said, "The company examines the opportunities and challenges in its business environment and adapts its activities to them, while investing in innovation and leveraging and integrating innovative technologies. As a result, the company examines measures aimed at preserving its leadership and resilience and ensuring its competitive ability in providing an adequate response to the changing market needs. Israel continues to be among the centers of development and Amdocs' leading innovation in the world, and where we recently reopened the Sderot campus that was closed following the war, and we continue our joint efforts to restore the communities in Sderot and the surrounding area."
Amdocs, led by CEO Shuky Shefer, is traded on Nasdaq with a market cap of $9.7 billion, after the share price has fallen 3.5% since the start of the year. Amdocs expects growth of between 1.6% and 3.6% in 2024 and 7%-11% growth in non-GAAP net profit. Free cash flow will reach $700 million. In the first half of the 2024 financial year, Amdocs reported revenue of $2.5 billion and non-GAAP net profit of $366 million.
Published by Globes, Israel business news - en.globes.co.il - on July 21, 2024.
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