Israeli software giant Amdocs is reportedly laying off about 1,000 employees in Israel and globally due to the impact of the coronavirus pandemic.
According to a report by news website Calcalist, with $691mn of Amdocs’s $1bn quarterly income coming from U.S. clients and the uncertainty surrounding the financial recovery in the world’s largest economy due to the pandemic, Amdocs is planning to cut many hundreds of jobs, including senior positions.
Although it has not yet been confirmed as to how many employees would be laid off from which geographic locations, Amdocs currently employs 25,000 people worldwide including 4,500 from Israel alone. Most of the company’s employees are based in Ra’anana, as well as from offices in Nazareth and Sderot.
Earlier in April, the company had notified its employees that due to the financial uncertainty the salary raises planned for July will not be implemented as scheduled and that all of its employees should take 13 days of paid vacation between April and June of this year.
According to a source mentioned in the report, these steps were being taken to help ensure the job security of the employees during this difficult time.
“As a global company we are committed to acting in a level-headed, responsible, and proactive manner,” Amdocs President and CEO, Shuky Sheffer said at the time. “We were among the first to recognize the magnitude of the coronavirus crisis and acted decisively to protect the health of our employees. Our next steps are an attempt to optimally balance the needs of our employees and their job security during these times with the responsibility of the company to serve its customer base while maintaining financial stability. We decided to initiate these steps in an attempt to prevent future action that would have long-term negative effects on our employees during these uncertain times of the coronavirus crisis.”
“As a global corporation with tens of thousands of employees, Amdocs is continually making the necessary adjustments in its expenses while strategically assessing its workforce and adapting to the changing business needs,” read an Amdocs statement. “This is especially correct at this complex time of continued uncertainty in global markets. Amdocs is continuing to recruit employees in a wide range of sectors in which its activity is growing and investing in its growth engines while taking care of its human capital.”
Earlier in April, Amdocs had laid off 150 employees from its Pune office via a video call without providing much detail, leaving employees helpless. The company faced heavy backlash from authorities, public and employees’ unions for their act. Later on after taking cognizance of the situation, based on numerous complaints filed by various employee unions, the Labour Commissioner of Pune had issued a notice to Amdocs management and sought their reply on the matter.
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