Amdocs to Lay Off Hundreds of Employees Amid Restructuring

Amdocs is set to lay off "hundreds" of employees, including many in Israel, as it establishes a dedicated GenAI & Data division. The company is adapting to its business environment, with the layoffs part of a strategic process aimed at strengthening its leadership in the global IT and telecom market. Amdocs is examining steps to ensure its competitive strength and business efficiency to support growth in new core areas.

Amdocs Limited (DOX), a leading provider of software and services to communications and media companies, has announced plans to lay off hundreds of employees, including many in Israel, as it establishes a dedicated GenAI & Data division. The company is adapting to its business environment, with the layoffs part of a strategic process aimed at strengthening its leadership in the global IT and telecom market [2].

The company's third-quarter fiscal 2025 results, reported on August 6, 2025, showed revenue of $1.14 billion, down 8.4% year-over-year (YoY) as reported, but up 3.5% YoY in pro forma constant currency. The quarterly report also highlighted a 12-month backlog of $4.15 billion, up 3.0% YoY on a pro forma basis [2].

Amdocs expects fiscal 2025 revenue outlook of (10.0%)-(9.0%) YoY as reported and 2.4%-3.4% YoY in pro forma constant currency. The company reiterated its fiscal 2025 target for double-digit total shareholder returns [2].

The layoffs are part of Amdocs' strategic plan to enhance its competitive strength and business efficiency in new core areas, including GenAI and data analytics. The company aims to leverage these emerging technologies to drive growth and innovation in the global IT and telecom market.

Amdocs' stock has lost about 0.4% since the beginning of the year, compared to the S&P 500's gain of 7.1%. The company's earnings outlook and management commentary on the earnings call will be key factors in determining the stock's immediate price movement [1].

Investors should closely monitor Amdocs' earnings estimate revisions and the outlook for the industry as a whole. The Computers - IT Services industry is currently ranked in the bottom 37% of the 250 plus Zacks industries, with the top 50% outperforming the bottom 50% by a factor of more than 2 to 1 [1].

References:
[1] https://www.nasdaq.com/articles/amdocs-dox-q3-earnings-and-revenues-beat-estimates
[2] https://www.nasdaq.com/press-release/amdocs-limited-reports-third-quarter-fiscal-2025-results-2025-08-06