AMDOCS IS LAYING OFF 700 EMPLOYEES 100 OF THEM IN ISRAEL - ABOUT 3% OF IT'S WORKFORCE

Amdocs is reducing its workforce by 3%. about 700 employees will be laid off, of which 100 are in Israel.
Amdocs is known as someone who is in a hurry to "pull the trigger" when it comes to manpower. Due to Corona, it laid off 1,000 of its 25,000 employees worldwide, of which several hundred are employed in Israel.
Amdocs, which develops software for the communications market, is now embarking on a global cutback. Amdocs currently employs 5,000 people in Israel and company officials point out that it continues to recruit employees and has quite a few open positions at the same time as layoffs.
Amdox's situation today is completely different from what it was in the previous crisis and it enjoys stability in revenues, high profitability and pays a regular dividend, which it even increased at the end of the third quarter. Even shares moved contrary to the trend in the stock market in general and in technology in particular with a 20% increase in the summary of 2022 which brought the company to a value of about 10 billion dollars.
The Amdocs company, which is managed by Shafer Markets, joins the trend of layoffs in the economy. The company will lay off 100 of its 5,000 employees in Israel as part of a procedure in which 700 of its employees worldwide will be laid off - that is, 2.5% of the company's workforce.
Amdocs develops customer billing systems for telecommunications companies, operational support systems for network management and customer relationship management systems. Amdocs, unlike other high-tech companies, enjoyed a good year of growth mainly thanks to the continued investments of North American telecommunications companies in the transition to the cloud, digitization and automation of communication networks.
Amdox's stock rose 23% in 2022 compared to a 33% decline in the Nasdaq index thanks to the changing tastes of Wall Street investors and a preference for profitable companies that generate cash flows over fast-growing companies that have not demonstrated the ability to make a profit.
Amdocs earned $158 million, which is $1.29 per share, in the third quarter of 2022 on a non-GAAP basis, i.e. excluding expenses related to the allocation of options to managers and employees, reduction of intangible assets and obligations for contingent payments on the purchase of companies, an increase of 7% compared to the corresponding quarter in 2021 .
Amdocs' revenues grew by 7.3% in the third quarter of 2022 compared to the corresponding quarter in 2021, and amounted to $1.167 billion. The main engine for growth in the company's revenues in the past quarter as well was its business in North America. Revenues in North America increased by 9.9% in the third quarter of 2022 compared to the same period in 2021 and by 0.8% compared to the second quarter of 2022, reaching a record level of $794 million.
Amdocs' order backlog increased in the third quarter of 2022 by $20 million compared to the second quarter of 2022 and by 7.6% compared to the backlog at the end of the third quarter of 2021 and amounted to $3.97 billion.
Amdocs recently reported on new contracts such as a contract for the supply of managed services to the satellite communications company SES, a contract with the information technology company for the aviation industry SITA, for the supply of cloud-based services for billing and collection for new products and services that SITA will launch. Amdocs also signed a multi-year contract with the telecommunications giant Telefonica, to provide cloud-based operational support services for the launch of new services and the digitization of operational systems in Argentina, Chile and Peru. In addition, Amdocs signed the first multi-year agreement for the digitization of the operating systems of the Azeri telecommunications company Azerecell and the transfer of the customer relations systems of the Azeri telecommunications company to the cloud.
The company said in reference to the layoffs: "Amdox is a solid company, with continuous growth and with a strong forecast for the future. However, out of responsibility and vigilance to what is happening in the world, we are required to take actions to maximize our flexibility and efficiency and do so carefully and moderately, including reducing the global workforce by a rate of approx. 2%-3% percent".
Amdocs, whose fiscal year ended in October, reported a 7% growth in revenue to $4.6 billion in the annual summary and its order backlog reached $4 billion for the next 12 months. The company's operations generated a cash flow of $757 million. Amdocs predicts that in 2023 it will show a similar growth rate of 6%-10%.