SAP to restructure 8,000 roles in push toward AI
What's the story
German software giant SAP has announced a €2 billion restructuring plan, impacting 8,000 roles, as it shifts its focus toward artificial intelligence (AI)-driven business sectors. The restructuring will primarily involve voluntary leave programs and internal re-skilling measures to concentrate on key growth areas such as business AI. The company also plans to invest nearly €1 billion in AI-powered technology start-ups through its enterprise capital firm, Sapphire Ventures.
Details
SAP to ensure that employees headcount remains unchanged
By the end of 2024, SAP expects its headcount to remain "similar to the current levels." At present, it has over 105,000 employees. The restructuring will affect operating profit in the first half of 2024. In addition, SAP forecasted its 2024 cloud revenue to be between €17-17.3 billion and updated 2025 outlook, predicting adjusted cloud gross profit of around €16.2 billion. The company's cloud business revenue at the end of 2023 was €13.66 billion, missing its forecast of €14.06 billion.