SAP

SAP, the German software giant, announced a major restructuring plan on Tuesday that will affect over 7% of its global workforce, equating to approximately 8,000 employees out of its total of about 108,000. The company aims to manage this shift through voluntary buyouts and internal job changes, expecting its overall headcount to remain stable by the end of 2024. This move is part of SAP's strategy to accelerate growth and become more cloud-centric, heavily investing in artificial intelligence to drive future revenue. The restructuring reflects broader industry trends where tech companies are adjusting to economic pressures and shifting priorities, following similar actions by other major firms. SAP also revised its 2025 profit outlook due to the costs associated with this transformation.

German enterprise software giant SAP announced on Thursday, January 26, 2023, that it will cut up to 3,000 jobs, representing about 2.5% of its global workforce. This targeted restructuring aims to streamline the company's portfolio and concentrate investments in its strongest growth areas, such as its accelerating cloud business. The move, expected to yield significant cost savings, comes despite SAP reporting positive fourth-quarter results and meeting its annual guidance. The layoffs reflect a strategic shift to ensure double-digit profit growth in 2023, even as the company navigates a challenging macroeconomic environment.