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Israeli Software Firm NICE to Lay Off Approximately 5% of Workforce

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Israeli software company NICE will lay off about 5% of its staff, impacting several hundred employees. The company cites organizational restructuring and a shift towards AI solutions for customer engagement as reasons for the layoffs. Despite workforce reductions, NICE projects an 8% increase in annual revenue to over $3.17 billion, though operating profit and net profit have declined in the first half of 2026.

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Israeli software company NICE is laying off approximately 5% of its global workforce.
The layoffs affect several hundred employees out of over 9,600 staff members.
NICE attributes the job cuts to organizational restructuring and adapting to AI-driven client needs.
The company forecasts an 8% increase in annual revenue for 2026, reaching over $3.17 billion.
Despite revenue growth projections, NICE reported a 25% decrease in operating profit for the first half of 2026.

Israeli cloud software company NICE is set to lay off several hundred employees, representing about 5% of its total staff, according to The Marker. As of the end of 2025, NICE employed over 9,600 people globally, with approximately 4,000 in the Asia-Pacific region, including Israel. The company attributes these workforce reductions to a restructuring of its organizational setup and a reallocation of resources. This move is intended to better address client demands for AI-driven solutions in customer engagement.

Despite the layoffs, NICE anticipates a significant increase in its annual revenue for 2026, projecting between $3.17 billion and $3.19 billion, an 8% rise compared to 2025. Cloud revenue is also expected to grow by 13-15%. However, the company's financial performance in the first half of 2026 shows a decline in operating profit under GAAP, which fell by approximately 25% to $230.8 million, down from $309 million in the same period last year. Gross margin decreased from 66.8% to 64.2%, and non-GAAP net profit saw a reduction from $375 million to $320.5 million.

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