In response to global market trends, SAP is restructuring its workforce, with plans to cut 2,600 jobs in Germany. The company aims to realign itself with cloud technology and artificial intelligence (AI) as part of this initiative. The restructuring will involve voluntary measures such as early retirement and severance payments, as well as further training and some layoffs.
SAP has stated that most affected employees will be informed in the coming weeks, with the aim of completing the process worldwide by the end of the first quarter of 2025. Despite job cuts, the company emphasizes its commitment to investing in growth areas and maintaining a consistent number of employees until the end of 2024. However, concerns have been raised by the European works council about the lack of adequate justification for the restructuring decisions and the potential impact on employee morale.
Despite these challenges, SAP reported a 13% increase in operating profit in 2023 and saw significant growth in its cloud software segment. To continue this momentum, the company plans to invest nearly one billion euros in AI by the end of 2025. This investment is expected to drive further growth in sales and profits for SAP.
