Amdocs to lay off hundreds, adjusts to AI with new division

Amdocs, a telecom technology company, is set to lay off hundreds of employees as part of a transformation process to prepare for the world of AI. The company is establishing a dedicated GenAI & Data division, which will deeply embed AI into Amdocs' DNA and position it as a global leader in the field. The layoffs are necessary to ensure competitive strength and business efficiency, and the company currently has 30,695 employees, including 16,500 in the Asia-Pacific region.

Amdocs, a leading provider of software and services to communications and media companies, is undergoing a significant transformation to embed artificial intelligence (AI) into its core operations. The company has announced the creation of a new division, GenAI & Data, and is preparing for another round of layoffs to ensure competitive strength and business efficiency. As of 2024, Amdocs employs approximately 29,000 people globally, including 5,000 in Israel [1].

The new GenAI & Data division, led by Ilan Sade, Senior Vice President and Division President, aims to integrate AI capabilities into every product, service, and process within Amdocs. This strategic move is part of a broader effort to position the company as a global leader in AI. According to Sade, "Our goal is to integrate GenAI capabilities into every product, service, and process, driving new growth for Amdocs and our customers. Our journey began two years ago, and now we are deepening our commitment and positioning ourselves as global market leaders in the field" [1].

The upcoming layoffs, which are expected to affect hundreds of employees in Israel and worldwide, are part of the company's ongoing efforts to streamline its operations and align with the evolving business environment. Amdocs has a history of implementing layoffs, with the most recent round in 2024 resulting in the loss of 1,500 jobs [1]. The new division will consolidate the company’s AI initiatives and bring together core functions in product, engineering, strategy, and go-to-market under one roof.

In parallel, Amdocs has expanded its strategic collaboration with Consumer Cellular, a U.S. wireless provider, to leverage AI and data platforms for transforming onboarding, operations, and customer experiences across its MVNE ecosystem. This multi-year agreement aims to enhance Consumer Cellular's MVNE platform with AI-driven insights and automation [2].

Amdocs' transformation process, designed to strengthen its leadership in the global IT and telecom market, requires adjustments to its organizational structure and workforce. The company is currently examining steps intended to ensure its competitive capabilities and business efficiency, in order to best support growth in these new core areas [1].

References:
[1] https://www.calcalistech.com/ctechnews/article/bl7qwfsuw
[2] https://www.nasdaq.com/press-release/consumer-cellular-expands-strategic-collaboration-amdocs-accelerate-ai-driven-mvne