Sapiens begins global layoffs as new owner Advent reshapes the company
The software company is laying off about 10% of its global workforce following its $2.5 billion acquisition by Advent. The cuts in Israel will be relatively modest, around 5%, while layoffs in India and the US will reach about 10% of employees. “Sapiens remains deeply committed to its Israeli site, which is central and critical to the company,” said Ernesto Marinelli, Chief People Success Officer at Sapiens.
After weeks of speculation and growing concern among employees at software company Sapiens, Calcalist has learned that management has begun holding company-wide conversations outlining the scope of expected layoffs following the completion of the $2.5 billion sale of Sapiens to private equity firm Advent.
Sapiens is embarking on a broad restructuring that will include layoffs of approximately 10% of its global workforce, or about 540 employees out of a total of 5,400. The cuts will not be evenly distributed across regions. For employees in Israel, the news is relatively reassuring: the local reduction will be the smallest among the company’s major sites, amounting to 40 employees, around 5% of Sapiens’ Israeli workforce of roughly 800.
The deepest cuts will take place in India and the United States, where layoffs will reach about 10%. India is currently Sapiens’ largest operating center, employing around 2,000 people. The scale of the reduction there reflects the new management’s decision to move away from software-and-services sales and transition fully to a software-as-a-service (SaaS) model, in line with prevailing cloud-based industry standards.
In the U.S., where Sapiens employs about 600 people, the relatively high layoff rate is tied to the company’s recent acquisitions in the region. According to sources familiar with the process, Advent does not view some of these assets as strategic and may seek to divest them over the coming year.
As part of the changes introduced by the acquiring fund, Sapiens’ management has been replaced and the company’s headquarters relocated to London. Advent announced the acquisition in August, offering a 60% premium to Sapiens’ market value at the time. The company had previously been controlled by the Formula Group, which held 43.5% of the shares and has since been left with a small residual stake. Following completion of the transaction, Sapiens was delisted from trading in New York and Tel Aviv on December 17.
The shift away from Israel as a headquarters is also reflected in the company’s leadership changes. All newly appointed executives are representatives of the fund, and the company’s previous management team no longer appears on its website. Roni Al-Dor, who led Sapiens for two decades, stepped down at the end of 2025, while the rest of the management team departed immediately upon the company’s transition to private ownership. Mike Ettling, appointed by Advent as active chairman, is currently serving as interim CEO, while the fund searches for a permanent CEO.
Despite these changes, Advent is keen to signal the continued importance of Sapiens’ Israeli operations, where much of the company’s core technological expertise resides. Last week, Ernesto Marinelli, appointed by the fund and serving as Chief People Success Officer, visited Israel. Marinelli accompanied Advent’s due diligence process and has led the company’s human resources function since October.
In a conversation with Calcalist, Marinelli described the workforce reduction not as a cutback but as part of a structural transformation. “Today’s customers want completely different things than in the past,” he said. “Everyone is moving to the cloud and expects innovation, so Sapiens must change the way it operates.” He added that the company’s existing organizational structure no longer matched its operational needs, making some roles redundant.
“Although the management headquarters moved out of Israel, Sapiens remains deeply committed to its Israeli site, which is central and critical to the company,” Marinelli said. “This is the heart of our innovation and technological leadership. That’s why the reduction here is more limited, and we will continue to invest significant resources in Israel.”
According to Marinelli, laid-off employees worldwide will receive severance terms “above market standards,” and he expects most of the downsizing to be completed in the near term. At the same time, the company is reviewing its broader product portfolio and is expected to make decisions over the coming year regarding certain products, including the possible sale of non-core assets to external parties.
In recent years, Sapiens pursued a series of acquisitions aimed at expanding its product offerings. Under Advent’s ownership, the strategy is shifting toward a more focused portfolio, even at the cost of lower revenue, in order to concentrate on the company’s fastest-growing and most profitable products. Marinelli said Sapiens has set a target of achieving annual growth of at least 10% this year.
The core rationale behind Advent’s acquisition of Sapiens is to accelerate its transition to a cloud-based SaaS model and, at a later stage, to integrate artificial intelligence capabilities. Founded in the 1980s, Sapiens had already begun moving away from traditional software licensing, but the pace of change was deemed insufficient by the new owners.
Sapiens’ strength lies in its long-standing reputation in the insurance industry and the widespread adoption of its systems among insurers worldwide. Its challenge, however, is the perception that it has lagged in innovation at a time when cloud computing, and now artificial intelligence, are reshaping the sector.
Financially, the company remains profitable. In 2024, Sapiens reported revenues of $524 million and operating profit of $86 million. In the first three quarters of 2025, it recorded revenues of $430 million and operating profit of $55.7 million.
