The $2.5 billion acquisition of Israeli software firm Sapiens by US private equity major Advent has triggered a sweeping overhaul of the company’s leadership and workforce, with layoffs set to impact nearly 15 per cent of employees globally.
Employees have been informed that the company has begun a “transformation” and job consolidation exercise, which is expected to result in the elimination of around 700–800 roles. The layoffs are likely to be rolled out in January, after the US holiday season.
Sapiens employs approximately 5,400 people worldwide. While the immediate impact in Israel is expected to be limited to several dozen roles, the company’s largest workforce is based in India, with over 2,000 employees across Asia. Around 1,000 employees are based in the UK and Europe, and about 600 in the United States.
The restructuring is driven by Advent’s plan to reduce Sapiens’ services-heavy operations, which are seen as low-growth and less profitable. The focus will now shift toward a narrower portfolio of higher-margin products, even if it leads to a short-term decline in revenue.
As part of this strategic reset, Sapiens’ headquarters are being relocated from Israel to London. Management meetings, previously held in Israel, will now take place in the UK, underscoring a clear shift in the company’s centre of gravity.
The leadership overhaul has been swift. All senior executives were replaced immediately after the deal closed, and new leadership—largely appointed by Advent—has taken charge. Veteran CEO Roni Al-Dor, who led Sapiens for two decades, will formally remain in the role until December 31, 2025, though operational control has shifted. Advent-appointed chairman Mike Ettling has assumed the role of interim CEO.
Advent has also installed a new CFO, Chief People Success Officer and Chief Transformation Officer, replacing the existing Israeli leadership team. Israeli executives now appear on the company’s website largely under an “Extended Management Team” designation, with only a few promoted into newly created customer-focused roles.
Beyond the planned layoffs, further attrition is expected among senior engineers and mid-level managers. Employee dissatisfaction has grown over the absence of retention bonuses and relatively modest sales incentives, especially in light of the high valuation achieved in the sale. Sapiens’ limited employee stock option programme has also become a point of concern for staff across geographies.
The changes signal a fundamental reset at Sapiens as Advent moves to reshape the company into a leaner, more profitability-focused enterprise.