The painful round of layoffs Amdocs carried out recently, in which 8-10% of the workforce was dismissed, is hardly over, and it turns out that the company will be forced to let another 500-600 employees go.
Two days ago, “Globes” reported that Amdocs management was planning a comprehensive restructuring. The plan calls for Amdocs to be organized into four divisions: service, headed by recently appointed COO Sami Totah; products, headed by Nissim Daunov; finance and administration, headed by CFO Ron Moskovitz; and New Ventures, headed by Dani Keret.
It appears that the split into four divisions will mean a cut in the workforce, and the layoffs will take place by the end of the year.
An Amdocs spokesperson said in response: “As is well known, it is not possible to predict the future state of the market and the company’s future business needs. The company will do all in its power to meet its revenue targets, in an attempt to avoid further cutbacks.”
A month ago, “Globes” reported that, despite the layoffs, there continued to be hidden unemployment at the company. Since no large new projects have been received, and given the compete paralysis in the telecommunications market, it seems that Amdocs will soon have to implement a further round of layoffs.
Published by Globes [online] - www.globes.co.il - on August 7, 2002