Sapiens Announces Major Workforce Reduction Following Advent Acquisition
Global software company Sapiens is implementing significant job cuts across its operations. The firm plans to eliminate approximately 540 positions, representing about 10% of its total workforce. This decision comes shortly after private equity giant Advent International completed its $2.5 billion purchase of Sapiens.
India and United States Bear the Brunt of Layoffs
Employees in India and the United States will experience the most severe impact from these workforce reductions. Sapiens currently employs around 2,000 people in India, where layoffs could reach up to 10% of the local workforce. Similarly, the company's US operations, which include nearly 600 employees, may see cuts approaching the same percentage.
In Israel, where Sapiens maintains substantial operations, the company will eliminate approximately 40 positions. This represents about 5% of its Israeli workforce. The job reductions will not be evenly distributed across all regions where Sapiens operates.
Strategic Shift Toward Cloud-Based Services
Ernesto Marinelli, the Chief People Success Officer appointed by Advent, explained the rationale behind these cuts. He described the layoffs as part of a broader structural transformation. "Today's customers want completely different things than in the past," Marinelli stated. "Everyone is moving to the cloud and expects innovation, so Sapiens must change the way it operates."
The Calcalist report that first revealed these plans provided additional context. According to their sources, the scale of reduction in certain regions reflects management's decision to transition completely to a software-as-a-service model. This shift aligns with prevailing cloud-based industry standards. Advent does not view some recent US acquisitions as strategically important and may divest them within the coming year.
Post-Acquisition Organizational Changes
Advent International finalized its acquisition of Sapiens in 2025 for $2.5 billion. Following this transaction, several significant changes occurred within the company. Advent replaced Sapiens' existing management team and relocated the corporate headquarters to London. Additionally, Sapiens was delisted from trading on both the New York and Tel Aviv stock exchanges on December 17.
The company currently employs 5,400 people across various global locations. These workforce reductions mark one of the most substantial changes since Advent assumed control. Industry observers will be watching closely to see how this strategic pivot toward cloud services affects Sapiens' competitive position in the software market.
