Amdocs’ stock continues to weaken even after another round of layoffs and a broader efficiency drive. In the past three weeks, the share price has fallen by more than 20%, pushing the telecom software company’s market value to its lowest level since 2020, and, excluding the early pandemic drop, its lowest since 2015.
About three weeks ago, Amdocs announced a sweeping reorganization plan that includes cutting 7% to 10% of its global workforce. The announcement initially lifted the stock slightly, as investors expected aggressive cost cuts to improve profitability and help restore growth. That optimism quickly faded, and since the start of June the company has erased all of those gains.
Amdocs is now worth about $5.54 billion, reflecting a sharp shift in investor sentiment. The market appears to be interpreting the layoffs not just as efficiency measures, but possibly as a sign of deeper structural problems. The current cuts are the first under new CEO and president Shamay Hortig, who took over at the end of March after veteran chief executive Shuky Sheffer stepped down.
Hortig inherited a company facing a volatile telecom market and a continuing challenge of balancing cost reductions with growth. Amdocs has about 29,000 employees worldwide, including roughly 5,000 in Israel, and a significant share of the cuts is expected to affect local staff. Layoffs have become routine in recent years, with about 2,700 jobs cut in 2023, another 1,500 in 2024, and several hundred more in 2025. Although management described the latest move as a “strategic reshaping” meant to strengthen its global position and emphasized Israel’s importance, investors remain unconvinced and want to see clear, stable growth rather than repeated job cuts.
