Amdocs, the Israeli multinational software and services company, is undergoing a significant transformation as it prepares to lay off hundreds of employees globally.
The move is part of a strategic shift toward artificial intelligence (AI), with the company launching a new GenAI & Data division aimed at embedding AI across its operations.
While Amdocs has historically conducted annual workforce reductions, this latest round marks a notable pivot driven by technological evolution rather than performance metrics or profitability concerns.
Amdocs GenAI & Data Division: A Strategic Shift
The newly announced GenAI & Data division will consolidate Amdocs’ engineering, strategy, product, and go-to-market teams under one umbrella.
Headed by Ilan Sade, Senior Vice President, the division has been in development for two years and is now being positioned as a central pillar of the company’s future.
According to Ilan, “We established the new division with the strategic intention of making artificial intelligence an integral part of Amdocs’ DNA.
He added, “Our goal is to integrate GenAI capabilities into every product, service, and process, driving new growth for Amdocs and our customers”.
This division is not merely a departmental reorganization—it represents a fundamental rethinking of how Amdocs delivers value.
The company aims to enhance performance, accelerate innovation, and create added value for clients by embedding AI into its core offerings.
Layoffs: A Consequence of AI Transformation
Although Amdocs has not officially disclosed the number of employees affected, reports suggest the layoffs will impact hundreds of staff members across its global operations, including in Israel.
The company currently employs around 29,000 people worldwide, with approximately 5,000 based in Israel.
This marks the fourth major layoff round in three years. In 2023, Amdocs cut 2,700 positions in two waves, followed by another 1,500 layoffs in 2024.
Unlike previous years, where job cuts were attributed to performance reviews and cost optimization, the current restructuring is directly linked to the company’s AI strategy.
Amdocs’ approach mirrors a broader industry trend.
Major tech firms like Microsoft and Intel have also reduced headcounts while ramping up AI investments.
Tech companies eliminated over 89,000 jobs in the first seven months of 2025, attributing nearly half of them to AI-driven restructuring.
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