Software and telecommunications services giant Amdocs is preparing for a sweeping global reorganization, with plans to reduce its headcount by roughly 7% to 10%.
Advertisement
The massive downsizing will impact between 2,700 and 3,000 employees out of its 29,000-strong worldwide workforce.
Hundreds of these cuts are projected to hit the company’s foundational development centers in Israel, where it employs around 5,000 people.
The extensive operational shift is spearheaded by newly appointed President and CEO Shimie Hortig, who assumed the leadership role at the end of March 2026 following the retirement of longtime executive Shuky Sheffer.
The AI Shift and a Flattened Organizational Hierarchy
Advertisement
The latest workforce reduction marks an aggressive effort by the new leadership to redesign Amdocs into a more flexible, efficient, and less hierarchical corporation.
This restructuring follows a foundational strategy laid out late last year, when the company centralized its tech footprint under a specialized GenAI & Data division.
Company leadership confirmed that they aim the current transition at deeply integrating artificial intelligence capabilities into their core operating model.
By automating traditional labor-heavy processes, Amdocs intends to adapt directly to the evolving, self-sufficient technological demands of its media and telecom clients.
However, utilizing AI to maximize efficiency has also given corporate boards a practical justification to streamline structures and satisfy investors.
Advertisement
Amdocs Macroeconomic Pressures and a History of Downsizing
Beyond the artificial intelligence revolution, deep financial realities are driving the tech sector’s restructuring.
In localized tech hubs like Israel, a continuously strong shekel has made domestic engineers some of the most expensive talent globally.
Because Amdocs generates its revenue primarily in U.S. dollars while paying principal operational expenses in local currency, the structural gap has forced aggressive budget balancing.
This wave represents a multi-year trend of optimization rather than an isolated incident.
Amdocs previously cut 2,700 jobs in 2023, terminated over 1,500 employees in 2024, and initiated hundreds of targeted dismissals in late 2025.
While Amdocs stated it will preserve the strategic importance of its primary development hubs, it noted that it is still reviewing specific operational details.
The announcement came alongside a broader tech downturn, occurring within hours of parallel, major job cuts at industry peers like Wix and Rapyd.
Advertisement
Note: We are also on WhatsApp, LinkedIn, and YouTube to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
About the Author
Sahiba Sharma
Contributing Writer