Amdocs will lay off hundreds of employees globally as it launches a new division focused on AI, according to a report.

Amdocs, a software and services company with about 29,000 employees worldwide, plans to consolidate its AI efforts under the GenAI & Data division.

The layoffs are expected to affect staff in Israel and other countries, though the company has not specified exact numbers.

The new division will bring together product, engineering, strategy, and go-to-market teams, and will be led by Ilan Sade, senior vice president and division president.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ AI transformation drives simultaneous investment and workforce reduction across tech

Amdocs’ decision to launch a dedicated GenAI division while planning hundreds of layoffs reflects a broader industry pattern where AI advancement coincides with significant job cuts.

Across the tech sector, over 89,000 jobs were eliminated in the first seven months of 2025—a 36% increase from the previous year—with many companies citing AI integration as a key factor in workforce restructuring1.

This approach of investing in AI capabilities while reducing headcount has become commonplace, with nearly half of the 62,075 layoffs announced in July 2025 attributed to AI and technological updates2.

The trend suggests companies view AI transformation as requiring different skill sets rather than simply more workers, leading to strategic workforce reshuffling.

Major tech companies like Microsoft and Intel have followed similar strategies, cutting thousands of positions while simultaneously increasing AI investments, indicating this approach has become standard practice for navigating technological transitions3.

For Amdocs, this represents the fourth significant layoff round in three years, following cuts of 2,700 employees in 2023 and 1,500 in 2024, suggesting the company views workforce optimization as an ongoing necessity rather than a one-time adjustment.