Amdocs' four-year restructuring drive has cost $436 million and cut around 7,500 jobs
Amdocs recorded its highest annual restructuring charges in fiscal 2026, as it eliminated approximately 3,000 positions. The latest cuts follow three years of workforce reductions, as the Israeli-founded software company seeks to streamline its operations and adapt to the growing use of AI.
Amdocs' restructuring drive has become an increasingly expensive, four-year effort, with the Israeli-founded software company recording approximately $436 million in restructuring charges since fiscal 2023. Over the same period, it has eliminated around 7,500 jobs, as it seeks to reshape its business and reduce costs.
The financial burden has grown particularly sharply in the latest fiscal year. Amdocs recorded $153.5 million in restructuring charges in fiscal 2026, its highest annual total over the four-year period. That compares with $131.1 million in fiscal 2024, $80.5 million in fiscal 2025 and $70.9 million in fiscal 2023, according to the company's financial filings.
The workforce reductions have been similarly substantial. Amdocs cut approximately 2,700 positions in 2023, followed by more than 1,500 in 2024 and several hundred more in 2025. In 2026, the company eliminated approximately 3,000 positions, or close to 10% of its global workforce. Taken together, the cuts amount to roughly 7,500 jobs over four years.
The latest round marks a significant escalation in a restructuring process that has evolved alongside changes in the technology industry. In 2023, Amdocs described its restructuring measures as part of an effort to align its workforce with its global site strategy, optimize its hybrid work model and improve resource allocation. More recently, the company has explicitly linked its restructuring activities to operational efficiency, automation and the internal deployment of generative AI tools.
The bulk of the 2026 restructuring expense was recorded before the end of the third quarter. Amdocs reported $128.1 million in charges during the first nine months of its fiscal year, including $112.7 million related to workforce measures and $15.4 million associated with premises and other costs. A further $25.3 million was recorded in the fourth quarter, bringing the full-year total to $153.5 million.
The charges are not all severance payments. Amdocs' filings include costs related to premises and other restructuring activities, in addition to workforce-related expenses. The company also reported approximately $167 million in restructuring-related cash payments in fiscal 2026. That amount differs from the $153.5 million expense recognized in its financial statements because cash payments can include liabilities recorded in earlier periods.
The latest cuts are taking place under CEO Shimie Hortig, who took over at the end of March following the retirement of longtime chief executive Shuky Sheffer. Amdocs has described the broader reorganization as an effort to redesign its operating model and prepare for the next stage of the market, while strengthening its competitive position.
The company provides software and services to telecommunications operators around the world, including systems for billing, customer management and network operations. Its business is facing pressure to adapt as telecom providers shift toward cloud-based services and AI, while technology companies across the industry seek to automate more of their operations and demonstrate greater efficiency.
