German software giant SAP on Thursday announced plans to cut about 3,000 jobs this year, joining a wave of layoffs in the global tech sector.
The Waldorf-based group, which offers both traditional software and cloud-based computing services, is undertaking a “targeted restructuring program” to “strengthen its core business” and improve efficiency. said he planned to.
“This program is expected to impact approximately 2.5% of SAP’s workforce,” it said in its earnings report announcing full-year 2022 results.
SAP has about 120,000 employees worldwide and plans to cut about 3,000 jobs.
The move follows similar cuts announced by tech giants Meta, Amazon, Google, IBM and Microsoft as guards for sectors once unable to cope with the economic downturn.
SAP said it will cost €250 million to €300 million ($270 million to $330 million) due to job cuts, mainly in the first quarter of 2023.
The restructuring is expected to save between €300 million and €350 million per year from 2024 and will “help accelerate investment in strategic growth areas,” SAP said.
SAP also said it would consider selling its Qualtrics subsidiary, which specializes in online market research software.
The company said the sale would allow SAP to focus more on its core cloud business.
For all of 2022, SAP announced revenue of €30.9 billion, up 11% year-on-year.
At just over €8 billion, operating profit was down 2% compared to 2021.
SAP expects operating profit to increase by 10-13% in 2023.
© 2023 AFP
Quote: German Software Giant SAP Cuts 3,000 Jobs (January 26, 2023)
This document is subject to copyright. No part may be reproduced without written permission, except in fair trade for personal research or research purposes. Content is provided for informational purposes only.