The global economic crisis is forcing Amdocs Ltd. (NYSE: DOX) to make more layoffs in Israel, and it will fire an additional 200 employees in January. The billing and CRM software house is facing a difficult 2009 after several years of growth. The company expects zero growth as telecommunications carriers, its primary customers, cut spending.
Amdocs president and CEO Dov Baharav recently said, "Amdocs is managing its expenses on the assumption that there will low single-digit or no revenue growth in 2009. The goal is keep the profit margins we had in the fourth quarter."
The company is adjusting accordingly. In October, it fired 200 employees in Israel and 300 more in other countries. The company reduced its Israeli workforce by 274 employees in its last fiscal year, that ended in September 2008. After the January layoffs, the company will have 3,900 employees in Israel. The company is providing job consultancy for the laid-off workers.
Amdocs has four centers in Israel, in Ra'anana, Hod Hasharon, Haifa, and Sderot. The company closed its Jerusalem development center, which was consolidated with the Hod Hasharon operations.
Amdocs said in response that, as a global company that is a leader in its field, it was adapting to the global crisis and acting accordingly.
Amdocs's share price rose 2.8% yesterday to $18.83, giving a market cap of $3.8 billion. The share has fallen 45% this year.
Published by Globes [online], Israel business news - www.globes-online.com - on December 29, 2008
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